A new Palestinian unity government was sworn in Monday, June 2, marking a key step towards ending a major rift between factions in the West Bank and Gaza, BBC News reports.

The government, comprising technocrats, was agreed by Hamas and Palestinian President Mahmoud Abbas' Fatah party.

The two sides have governed separately since Hamas, which won elections in 2006, ousted Fatah from Gaza in 2007.

Israel says it will not deal with a Palestinian government backed by Hamas, which is sworn to Israel's destruction. It suspended crisis-hit peace talks with the Palestinians in April in response to the announcement of the reconciliation deal.

Hamas, which is designated a terrorist organization by Israel and other countries, opposes the peace talks, though President Abbas has said the new government will abide by previous agreements.

The new government comprises politically independent ministers and will be tasked with organizing elections to be held within six months. It is headed by incumbent Palestinian Prime Minister Rami Hamdallah.

However, Israeli Prime Minister Benjamin Netanyahu said on Sunday that world leaders should not "rush to recognize" the new government.

"Hamas is a terrorist organization that calls for Israel's destruction, and the international community must not embrace it. That would not bolster peace, it would strengthen terror," he told a cabinet meeting.

Israel has said it would cease all but security co-ordination with the Palestinians if the government was formed.

A statement from Hamdallah's office denounced Netanyahu's remarks, calling them part of a campaign intended to "cement [Israel's] occupation by all means".

The U.S., which has sponsored the Israel-Palestinian peace talks, has expressed concern over any Hamas role in the new government.

In a phone call with President Abbas on Sunday, U.S. Secretary of State John Kerry said the new government must "commit to the principles of non-violence, recognition of the State of Israel, and acceptance of previous agreements with it," the State Department said.

When Hamas and Fatah formed a coalition government in 2006, the U.S. and other Western nations withheld millions of dollars of aid to the Palestinians because of Hamas' participation.

The Hamas-led government was dissolved by President Abbas in June 2007 in a move not recognized by Hamas, a day after Hamas forces ousted Fatah from the Gaza Strip.

Hamas has continued to govern in Gaza, and the Palestinian Authority (PA) under President Abbas in the West Bank.

The enduring split has been deeply unpopular among Palestinians but previous reconciliation efforts have failed.

However, Hamas' isolation in Gaza and the failure of peace talks with Israel to produce tangible results created fresh impetus for both sides to heal the division.