"We are deeply disappointed by the comments of the (US) State Department regarding working with the Palestinian unity government," a government official said.
"This Palestinian government is a government backed by Hamas, which is a terror organisation committed to Israel's destruction," the official told AFP, declining to be named.
"If the US administration wants to advance peace, it should be calling on (Palestinian leader Mahmud) Abbas to end his pact with Hamas and return to peace talks with Israel," the official said.
State Department spokeswoman Jen Psaki earlier said Washington believes Abbas has "formed an interim technocratic government... That does not include members affiliated with Hamas."
"With what we know now, we will work with this government," Psaki said.