However, the two leaders agreed to continue talks on Monday, said Ghazi Hamad, spokesman for the Hamas-led caretaker government.

Hamas denied that there were obstacles in the meeting, saying that "There are no obstacles and the atmosphere was very encouraging."

"During the meeting, some points were agreed upon... even the Interior Minister post will not be an obstacle," he added.

Meanwhile, Nabil Abu Rudaina, spokesman for Abbas, also denied any "serious problem" during the meeting, pledging that the talks will be resumed Monday.

"But the matter needs some days or no more than a week," said Abu Rudaina.

Hamas handed over its minister candidates list to Haneya on Saturday, a day before Abbas-Haneya meeting, while Fatah did not announce its list.

Before Sunday's meeting, Palestinian sources at Abbas headquarters said that Abbas and Haneya would discuss the nomination of the key cabinet posts of interior minister and deputy prime minister.

However, Abbas and Haneya failed to reach a result on these two posts during Sunday's meeting.

The two rival movements Hamas and Fatah agreed in Saudi city of Mecca last month to form a unity government in a bid to end international siege on the Palestinians.

However, the formation of the unity government has been in a tough talks among Palestinian factions since the Hamas-led government resigned on Feb. 15.