Officials from the Palestinian faction Fatah said they will resume talks next week with Hamas on forming a unity government.
Fatah officials said negotiations will resume in Cairo on April 1.
Egyptian authorities, led by intelligence chief Omar Suleiman, have been mediating the reconciliation talks between the rival Palestinian factions.
The last round adjourned Thursday after the two sides agreed to hold elections by the end of January, 2010, but they have reached no deal on the make-up of a possible unity government.
Delegates said a key obstacle has been the two sides' fundamental disagreement on how to deal with Israel.
Fatah, which heads the Palestinian Authority, is willing to negotiate with Israel over the formation of a Palestinian state, but Hamas, the militant group that controls the Gaza Strip, wants a military victory over the Jewish state.
Egypt is also mediating separate talks aimed at reaching a long-term cease-fire between Hamas and Israel, as well as the release of captured Israeli soldier Gilad Shalit.
Some information for this report was provided by AFP and Reuters.