Palestinian PM says unity government delayed

GAZA, March 5 (Reuters) A Palestinian unity government will not be agreed before the end of next week, Prime Minister Ismail Haniyeh of the Islamist Hamas group said today.

The government, which Fatah and Hamas agreed to form after talks in Mecca, Saudi Arabia, on February. 8, had originally been expected to be unveiled at the end of last week.

''We did not conclude the consultations to form the government and we will not announce it before the end of next week,'' Haniyeh told a cabinet meeting in Gaza, referring to his talks with President Mahmoud Abbas of the rival Fatah faction.

Haniyeh said he would hold more talks with Abbas in the next two days, but said more time would be needed after that.

He did not list the sticking points. Other officials have said the two sides have yet to agree on who will take the helm of the interior ministry, in charge of the security forces.

Security men loyal to the rival factions faced off in Gaza after members of Abbas's National Security Forces fired in the air near members of Hamas's Executive Force. No one was hurt.

Abbas's men were seeking the return of what they said was one of their positions which Hamas loyalists had taken over earlier in the day, security sources said.

Forces loyal to Fatah and Hamas fought sporadic street battles in Gaza until the Mecca agreement calmed the violence.

But they have pushed ahead with expansion plans despite the agreement to form a unity government, Palestinian and Western officials said. There is little trust between the two sides.

REUTERS PDM PM1825