Hamas has refused to recognise Israel

A Hamas delegation will then tour Arab capitals to seek financial support for their administration.

Hamas officials and Palestinian leader Mahmoud Abbas have agreed to convene parliament on 16 February, starting the process of forming a new government.

The exiled leaders are based in Lebanon and Syria.

Those leaders based in the West Bank have no way of reaching the meetings in the Egyptian capital.

First meeting

On Sunday the Palestinian Attorney General Ahmed al-Moghani announced that US$700m (£397m) worth of aid had gone missing under previous leadership, the BBC's Nick Thorpe said from Jerusalem.

Mr Moghani is carrying out an investigation into alleged corruption.

Israel is to give the Palestinians a final monthly payment of tax and customs revenues, frozen last week over Islamic militants Hamas' poll victory, it emerged on Sunday.

Israel suspended the funds because it regards Hamas as a terrorist group committed to the destruction of Israel.

Mahmoud Abbas' Fatah party lost to Hamas in last week's election

Hamas must now discuss the broader diplomatic and political issues and calls on them to renounce violence and recognise Israel, the BBC's Nick Childs says.

One common strand in their public comments is that as broad a coalition as possible should be formed, our correspondent adds.

It has so far refused to do so, although it has said it is willing to merge its military wing into a Palestinian army.

Some recent comments by the Hamas leadership have hinted they are willing to compromise, as hundreds of millions of dollars of foreign aid could be at stake.

A Hamas official announced the trip to Egypt on Saturday after talks with Mr Abbas.

It was the first time Mr Abbas had met with the Islamic militants since they beat his governing Fatah party in the Palestinian assembly election.