Egyptian President Hosni Mubarak and Palestinian President Mahmoud Abbas on Wednesday held talks over the election victory of the Islamic Resistance Movement (Hamas), the official MENA news agency reported.

"Talks covered the latest developments on the Palestinian arena in light of the results of the Palestinian elections and arrangements for the formation of a new government in addition to efforts to push the stalled Mideast peace process forward," said MENA.

Abbas said he would allow a Hamas government only if the group renounces violence and recognizes the existence of Israel, a diplomatic source said here.

Hamas won the Jan. 25 Palestinian parliamentary election, securing 74 seats in the new Palestinian Legislative Council, and has thus been given a mandate to form a new government.

Israel has said it would not deal with a new Palestinian government led by a group that calls for the destruction of Israel.

Abbas arrived in Cairo late Tuesday after meeting Jordan's King Abdullah II who urged Hamas to make peace with Israel.

Mubarak will also meet Israeli Foreign Minister Livni Tzipi later Wednesday as part of his efforts to push forward the long- stalled Mideast peace process.

Source: Xinhua