Hamas says Fatah's nominee to head a future Palestinian unity government is not acceptable.

Fatah says it wants current Prime Minister Salam Fayyad at the helm of a new government.

A Hamas official said Sunday that the organization will not hand over the unity government to Fayyad because, in the official's words, he “has sunk the West Bank into debt.”

Fatah, which controls the West Bank, and Hamas, which rules Gaza, recently signed a reconciliation agreement for joint authority. Hamas has not been part of the Israeli-Palestinian peace process and has led hostilities against Israel.

The U.S. State Department designates Hamas as a terrorist organization.