Ramallah - The secular Fatah party of Palestinian President Mahmoud Abbas Wednesday signed a long-awaited, Egyptian proposal that seeks to reconcile it with its bitter rival Hamas.

A Fatah representative involved in the Egyptian-mediated negotiations with Hamas said he would bring the signed paper to Cairo on Thursday.

Hamas, the radical Islamist movement ruling Gaza, has yet to sign the agreement, which seeks to end a more than two-year-old split among the Palestinians.

"Hamas is still studying the Egyptian the proposal and will give its answer," spokesman Fawzi Barhoum told reporters in Gaza.

Azam Ahmad, one of the main Fatah members involved in the talks with Hamas, confirmed that Fatah has signed the paper and will submit it to Egyptians on Thursday when the deadline they have set expires.

The 25-page reconciliation pact calls for Palestinian presidential and parliamentary elections to be held on June 28.

Fatah had demanded that the legislative elections be largely proportional, likely to act in its favour as Hamas unexpectedly won the last elections in 2006 when for the first time half the parliament seats were chosen through district representation.

But Hamas had insisted that a large part of the seats, at least 40 per cent, still be chosen through district representation.

The Egyptian compromise suggest that in the next poll, 75 per cent of the parliament seats be elected proportionally, and 25 per cent via district representation.

A joint factional committee is to oversee implementation of the agreement.

The Egyptians hope to hold a formal signing ceremony of the document in Cairo on October 25.

The document also deals with the charged issue of control over the Palestinian security forces.

Hamas and Fatah have been at loggerheads since the 2006 elections and their power struggle reached a height in June 2007. when Hamas forces overpowered the Fatah-dominated security headquarters of Abbas and violently seized sole control of Gaza.

Hamas had threatened not to sign the Egyptian proposal following Palestinian anger over Abbas' decision to delay a UN vote on a report accusing Israel - and Hamas - of having committed war crimes during last winter's Gaza war. Sources in Hamas said the movement was eventually expected to sign the document. (dpa)