Israeli Prime Minister Benjamin Netanyahu has asked international governments to reject a new Palestinian Authority government made up of representatives from Fatah and Hamas, a terrorist group.

Mr Netanyahu, who issued a statement ahead of the “swearing-in” of the new Palestinian cabinet today, said Hamas “was calling for the destruction of Israel”.

This morning, Mr Netanyahu called in Israeli ministers to discuss punitive steps against the new unity government.

He is expected to hold back tax revenues destined for the PA and suspend peace talks.

Ofir Gendelman, the Israeli prime minister's spokesman, posted on his Twitter account: "The Cabinet has unanimously decided not to negotiation w/ a PA govt that is backed by Hamas, a terror org that calls for Israel's destruction." (sic)

He added: "The Cabinet has decided to act, including in the international area, against the participation of terrorist organisations in PA elections.

"The Cabinet has decided to authorise the Prime Minister to impose additional sanctions on the Palestinian Authority".