Palestinian Prime Minister Salam Fayyad said on Saturday he intended to resign by the end of March in a move that could help unity talks between the rival Fatah and Hamas factions.

But Palestinian President Mahmoud Abbas, the Fatah leader who appointed Fayyad after Hamas took over the Gaza Strip in 2007, triggering a schism amongst the Palestinians, said he had asked the prime minister to stay on until results emerged from the Egyptian-sponsored reconciliation talks.

"Brother Salam Fayyad has submitted his resignation to us in order to support and strengthen the Palestinian dialogue on forming a government," Abbas told reporters.