Abbas was said to have been encouraging Palestinian businessmen and academics to run in the next PA elections. At least one new party has been established — financed by Palestinian billionaire Munib Al Masri — meant to provide Palestinians with a choice other than Fatah or Hamas.

"The biggest problem of any independent movement is money," a Palestinian source said. "If a political party had significant funds from independent sources, it could do very well in Palestinian elections."

Those in attendance included leading members of the Palestinian business community, Mazen Sinokrot, Bassem Khoury, Mohammed Hirbawi, Maha Abu Shusheh and Said Kan'an.

The participants, who cited Israel's ruling Kadima Party, agreed to establish a forum that would serve as the basis for a political movement.

The forum would be called the Association of Businessmen and Academics and stress the need to develop the Palestinian economy.

"In the past, we had many new parties that disappeared very quickly," association spokesman Hani Al Masri said. "First, we want to see what the reactions are. That's why the forum will operate as a lobby only. If we succeed in selling the idea, we will declare ourselves as a political party."

Abbas was said to have supported the association. The chairman has quietly pledged to Fatah leaders that he would step down after elections, expected to take place in late 2008.

Al Masri said the association would first conduct polls to determine the feasibility of an independent Palestinian political party. He said the party could be announced in October 2007 and advocate the reunification of the West Bank and the Gaza Strip.

"We have no choice but to reunite the West Bank, which is under Fatah control, with the Hamas-controlled Gaza Strip," Al Masri, a newspaper columnist, said. "We condemn the coup that Hamas staged in the Gaza Strip and urge Hamas to reverse the situation there so that we can resume national dialogue between all the factions."