Palestinian President Mahmoud Abbas has said that the Authority's unity government will resign as the rival Hamas movement is not allowing it to operate in the Gaza Strip.
According to the BBC, a Hamas spokesman said that it has rejected any unilateral dissolution.
The two factions Fatah and Hamas had governed separately since Hamas won parliamentary elections in 2006 and ousted Fatah from Gaza in 2007.
Hamas has also expressed surprise at the announcement of the President Abbas.