Palestinians Take Step Toward Unity After months of wavering, Palestinian President Mahmoud Abbas took a decisive step Monday toward reconciliation with the Islamic militant group Hamas, a move Israel promptly warned would close the door to any future peace talks. In a deal brokered by Qatar, Abbas will head an interim unity government to prepare for general elections in the Palestinian territories in the coming months. The agreement appeared to bring reconciliation - key to any statehood ambitions - within reach for the first time since the two sides set up rival Palestinian governments in the West Bank and Gaza in 2007. Monday's deal, signed in the Qatari capital of Doha by Abbas and Hamas chief Khaled Mashaal, put an end to recent efforts by the international community to revive long-stalled negotiations between Israel and the Palestinians on the terms of Palestinian statehood. Abbas appears to have concluded that he has a better chance of repairing relations with Hamas, shunned by the West as a terror group, than reaching an agreement with Israel's hardline prime minister, Benjamin Netanyahu. Netanyahu quickly condemned the Doha deal. It's either peace with Hamas or peace with Israel. You can't have them both," he said in a warning to Abbas, who has enjoyed broad international support. In this photo provided by by the Palestinian President's office, Palestinian President Mahmoud Abbas, left, and Khaled Mashal, chief of the Islamic militant group Hamas, right, confer with Qatar's crown prince Sheik Tamim Bin Hamad Al Thani, center, during a reconciliation meeting in Doha, Qatar, Monday, Feb. 6, 2012. The main Palestinian political rivals took a major step Monday toward healing their bitter rift, agreeing that Abbas would head an interim unity government to prepare for general elections in the West Bank and Gaza. (AP Photo/Thaer Ghanaim, Palestinian President's Office) Close In moving closer to Hamas, Abbas risks losing some of that backing and hundreds of millions of dollars a year in aid. Qatar, awash with cash from vast oil and gas reserves, assured the Palestinians that it would help limit any political and financial damages, according to Palestinian officials close to the talks. Qatar is willing to spend as much as $10 billion to help repair the damage of the rift, including settling mutual grievances by supporters of Hamas and Abbas' Fatah movement who at the height of tensions fought bloody street battles, the officials said on condition of anonymity because they were not authorized to discuss the closed-door meetings with reporters. The figure could not be confirmed independently. Whether the Palestinian Authority loses any of the roughly $1 billion in foreign aid it received each year may partly depend on the interim government's political platform and Hamas' willingness to stay in the background. The new government is to be made up of politically independent experts, according to the Doha agreement. If headed by Abbas, devoid of Hamas members and run according to his political principles, it could try to make a case to be accepted by the West. Abbas aides said they were optimistic they could win international recognition. The Quartet of international Mideast mediators - the U.S., the U.N., the European Union and Russia - has said it would deal with any Palestinian government that renounces violence, recognizes Israel and supports a negotiated peace deal. Abbas has embraced these principles, while Hamas rejects them. Top Abbas aides Nabil Shaath and Azzam al-Ahmed said they are confident the new government will be based on the Quartet principles. In any case, they said, the interim government's focus will be to prepare for presidential and parliamentary elections, not to negotiate with Israel. Such elections won't be held in May, as initially envisioned, they said, but could take place several months later.