Fatah blamed Hamas for refusing to give up control of Gaza, the Jerusalem Post reported.

"Hamas is responsible for the failure of the Yemeni initiative," said Yasser Abed Rabbo, a senior PLO official with close ties to President Mahmoud Abbas. "Our delegation will be heading home tomorrow. We will return to Yemen once Hamas accepts the initiative."

The plan put forward by President Ali Abdullah Saleh of Yemen called for Hamas to cede Gaza to the Palestinian Authority. It also provided for a new unity government and early elections.

A Hamas spokesman, Sami Abu Zuhri, said Fatah scuttled the talks by walking out. He said the delegations were close to an agreement and had been talking about further discussions during the weekend.