Under an agreement brokered in Egypt, an interim Palestinian government will be formed and a date will be set for elections, the BBC reported Friday.
"It needs to be clear that such an agreement crosses a red line," Lieberman told Israeli military radio Thursday. "The significance of this agreement is that … hundreds of terrorists will flood the West Bank and therefore we need to prepare for a different situation."
The surprise deal came after months of failed talks. The Fatah party of Palestinian Authority President Mahmoud Abbas, which runs parts of the West Bank, and Hamas, which governs Gaza, have been at odds for more than four years.
Israeli Prime Minister Binyamin Netanyahu said the Palestinian Authority couldn't have peace with both Hamas and Israel.
"I hope the Palestinian Authority will make the right choice -- peace with Israel," Netanyahu said.
Notable deaths of 2014 [PHOTOS]