Gaza City  - A senior Palestinian official said Saturday that he expects a final agreement for a deal between feuding Palestinian parties to be finalized by July 7.

"Egyptian mediators who push for a Palestinian deal, will finalize the draft just a few days before leaders of Palestinian factions convene in Cairo to sign the agreement on July 7," said Saleh Zidan, a leader of the Democratic Front (DFLP) in the Gaza Strip.

Hamas, which controls the Gaza Strip, has been at odds with the Fatah, which has nominal control over the West Bank, ever since Hamas won parliamentary elections in
2006, followed by its move to forcefully oust Fatah forces from the Gaza Strip in 2007.

However, Zidan's statement came on the same day that Hamas security forces clashed with demonstrators rallying in Gaza City against the split between the Palestinian factions.

At least two people were wounded, witnesses and officials said. Police forces reportedly beat protesters with sticks and rifle butts and fired shots into the air in an attempt to disperse the crowd.

Rabah Muhana, a leader of the Popular Front for the Liberation of Palestine (PFLP), which organized the rally said that three demonstrators were also arrested.

He said police attacked after participants chanted slogans calling for Palestinian unity.

The demonstrations come on the eve of the second anniversary of Hamas' takeover of the Gaza Strip.

Nonetheless, five specialized committees are set to continue work in Cairo to tackle differences between rival Hamas and Fatah movements.

"The committees would handle outstanding issues as Cairo insists that the agreement must be signed within the first ten days of July," Zidan added in a press statement.

The dialogue is focused on the formation of a unity government, reforming Palestinian security services in the Gaza Strip and paving the way for election in early 2010.

Zidan, who returned recently from Cairo, expects the committees to start meetings around June 20.

Hamas has voiced several reservations on the dialogue, demanding, for example, that any reform of security services also apply to Fatah-led forces in the West Bank. (dpa)