U.N. Secretary-General Ban Ki-moon told Israeli Prime Minister Benjamin Netanyahu on Friday that Israel should not withhold tax revenues from the Palestinian Authority following its unity deal with Hamas.
"The Secretary-General ... noted that Palestinian unity is a process which is just beginning now, and thus, it would be best to assess it as it moves forward," the U.N. press office said in a statement summarizing Ban's telephone call with Netanyahu.
The statement added that Ban "also urged Israel not to stop transferring tax revenues to the Palestinian Authority."
Israel blocked the transfer of 105 million dollars in customs duties and other levies it collects on behalf of the Palestinian Authority on Sunday, following a deal to reunite the two rival Palestinian groups Hamas and Fatah.
Israel has explained the withholding of funds, saying it refuses to let revenues flow to Hamas.
Ban said it was "urgent to overcome the impasse in the negotiations between Israel and the Palestinians. Continued drifting will not serve the interests of both parties."
The UN chief added that he was "convinced that realizing a negotiated two-state solution as soon as possible is in the best interest of both the Israeli and Palestinian people."
The statement said Ban hoped Israel would "make decisive moves towards a historic agreement with the Palestinians."
The UN chief reiterated that the United Nations has consistently supported the idea of Palestinian unity under the leadership of Palestinian President Mahmoud Abbas.
Ban's statement comes shortly after the EU announced on Friday that it would provide an extra 85 million euros (124 million dollars) to the Palestinian Authority to compensate for Israel's withholding of funds in a bid to help pay salaries of essential workers and to support vulnerable families.
A European Commission statement said the EU funds were being advanced under an accelerated procedure at the request of Palestinian Prime Minister Salam Fayyad to meet urgent financial needs.
"It is important that access to essential public services remains uninterrupted and the right to social services is respected," EU foreign policy chief Catherine Ashton said.
Palestinians see reconciliation between the secular Fatah and Islamist Hamas as crucial for their drive for an independent state in Gaza and the West Bank. The two groups had been at odds since a brief civil war in 2007, after which Hamas seized control in Gaza, and Fatah was left to administer the West Bank.
Israel has condemned the unity pact as a "tremendous blow to peace", with Netanyahu refusing to negotiate with Hamas, whose charter calls for Israel's destruction.