RAMALLAH, West Bank, May 1 (UPI) -- Palestinian Authority President Mahmoud Abbas and Prime Minister Salam Fayyad have agreed to form a new Cabinet headed by Fayyad, al-Quds al-Arabi reported.
The London-based newspaper, citing sources, reported Tuesday the agreement came during a 3-hour meeting between Abbas and Fayyad, The Jerusalem Post reported.
The deal came after Abbas dropped his demand the Cabinet be reshuffled and agreed to Fayyad's request to form a new one. Al-Quds al-Arabi said the new Cabinet will have 20 ministers.
Abbas reportedly wants to retain Foreign Minister Riad Malki, but Fayyad wants him out.
"The dispute between Abbas and Fayyad over the Foreign Ministry is very big," a source told al-Quds al-Arabi. "Malki will be a hot and hard battle, but Fayyad will lose."
Under the agreement, Nabil Qassis, former head of Bir Zeit University, is to serve as finance minister.
Fayyad will hold only the position of prime minister in the new Cabinet, and a top Fatah official is to be appointed deputy prime minister.