Damascus: Hamas leader Khaled Meshaal has vowed to keep up the group's armed struggle against Israel while calling for unconditional talks with rival Fatah group.

"I urge my brothers in Fatah to solve the Palestinian crisis and restore national unity through unconditional dialogue," Meshaal said on Friday.

"We can manage the conflict with Israel together, without dropping the option of resistance," he urged Palestinians.

The exiled Hamas leader also rejected a European offer for an indirect meeting with Israel to discuss an end to the conflict in the Gaza Strip.

Israel's Prime Minister Ehud Olmert on Friday admitted that continued Israeli construction in occupied West Bank breached peace drives in the region.

On Monday, Palestinian President Mahmoud Abbas said he wanted to "open a new page" with Hamas if it gave up control of the Gaza Strip, but Hamas rejected the conditions.

Abbas also reiterated a call for early elections. Meshaal said the issue of early elections could be addressed at the proposed talks.

"The problem is not early elections. Come to an unconditional dialogue and we will be ready to discuss anything," said Meshaal, who lives in exile in Syria.