Hamas will hold talks with Israel

Aboul Gheit, whose government has had close contacts with Hamas and other Palestinian militants over the past year, also said that joining the political process would lead to fundamental changes in the thinking of Hamas.

Hamas, which advocates replacing Israel with an Islamic state throughout historical Palestine, is taking part in Palestinian parliamentary elections for the first time on January 25. It poses a strong challenge to the ruling Fatah movement.

The United States and the European Union want Hamas to disarm and renounce armed struggle against Israel.

Aboul Gheit, interviewed in the London-based newspaper Asharq al-Awsat, said: "I am confident that Hamas recognises the existence of Israel and I am confident that it is able to coexist with the idea of negotiations with Israel."

"There's no need to keep equivocating on this matter, especially since Hamas has already accepted a truce with Israel for the sake of negotiations. I wonder whether this truce was with a ghost," he added.

In March Egypt helped persuade Hamas and the militant Islamic Jihad group to accept a conditional halt to attacks on Israelis until the end of 2005. Hamas has shown more respect for the truce than many other factions.