A Palestinian official says the prime minister appointed by President Mahmoud Abbas will remain in office despite an earlier announcement that he would step down.
Salam Fayyad had resigned to pave the way for unity talks and set March 31 as his last day.
But Azzam al-Ahmed of Abbas' Fatah Party says Fayyad and his government will only step down once a new Cabinet is formed.
Power-sharing talks are expected to resume this week in Egypt between the Islamic militant Hamas and Abbas' Fatah.
If the talks fail, officials say Fayyad will be asked to form a new government for the West Bank.
Since a bloody power struggle that split Palestinain territories in 2007, Hamas runs Gaza and Abbas' government rules the West Bank.
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