Haneya made the announcement when he was speaking ahead of a meeting for the Hamas-led caretaker government in Gaza.

He said that the second phase would include discussions to select the new ministers and to agree on the final makeup of the cabinet.

The designated Prime Minister said he ended talks with all Palestinian factions, powers and militant groups and explained latest power-sharing deal reached in Mecca between the Islamic Resistance Movement (Hamas) and rival Fatah movement.

According to the deal, Palestinian President Mahmoud Abbas asked Haneya to form the eleventh government that is hoped to overcome aid embargo applied by the West to the outgoing Hamas administration.

The international sanctions made the government unable to pay for almost 165,000 public servants.

Abbas has just ended an European tour to promote Mecca deal and is scheduled to return to the Palestinian territories in two days after paying a visit to the United Arab Emirates.

Haneya said he would meet Abbas as soon as the latter arrive in Gaza to put the final touches on the expected government and see the results of Abbas' tour.

Salah al-Bardaweel, a senior Hamas lawmaker, told reporters in the day that the new government is likely to be put for parliamentary voting next week.