| RAMALLAH, West Bank (Reuters) - Palestinian President Mahmoud Abbas has told Jordan that talks on a unity government with Hamas have hit a "dead end" and he will pursue other options, a senior Palestinian official said on Tuesday.
The "other options" could include the dismissal of the Hamas-led government and the appointment of a new prime minister, moves that would signify a new hard line against Hamas that could shake up the Palestinian political process.
Abbas's statement comes a day after Israeli Prime Minister Ehud Olmert made an appeal for peace with the Palestinians and before talks with U.S. Secretary of State Condoleezza Rice on Thursday, suggesting that it is part a bout of fresh diplomacy.
If Abbas were to dismiss the Hamas-led government and form a new one, it could open the way for Western financial sanctions, imposed after Hamas came to power in March, to be lifted, removing a heavy burden restraining the Palestinian economy.
At the same time, any move to dismiss Hamas from power, or to call a referendum on whether a new government should be formed, is likely to incite anger among supporters of the Islamist group and may deepen internal violence.
Following the reports of Abbas's statement, Hamas acknowledged that talks on a unity government, which have been off-and-on for months, were at a severe impasse, but said it still hoped that a way forward could be found.
The senior Palestinian official said Abbas had told Jordanian officials during talks in Amman that: "Talks with Hamas over a unity government have come to a dead end. This is not an option he will pursue," the official said of Abbas.
"He is now thinking of other options," having given up hope of reaching an agreement with Hamas, the official said.
Abbas has been trying to get Hamas to meet Western demands to recognize Israel and renounce violence. Hamas, which is formally committed to Israel's destruction, has resisted the calls.
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