The new Palestinian unity government will be announced before the end of this month, Palestinian sources said on Monday.
The government will consist of 15 or 16 ministers only, the sources said.
They added that the ministers would not be affiliated with any Palestinian group.
The Palestinian daily al-Quds reported that none of the ministers currently serving in the Hamas government headed by Ismail Haniyeh would join the unity government.
The paper said that a few ministers serving in the West Bank government headed by Rami Hamdallah would become part of the new coalition.
Fatah leader Azzam al-Ahmed is expected to travel to the Gaza Strip shortly for talks with Hamas leaders on the composition of the unity government as agreed between the two sides last month.
Al-Quds quoted Palestinian sources as saying that Hamas has "displayed a large degree of flexibility" regarding the issue of the formation of a "national consensus government" headed by Palestinian Authority President Mahmoud Abbas. "Hamas is not placing serious obstacles on the road to forming a new government," the sources said.
According to the sources, Abbas has begun consultations with representatives of various Palestinian groups, including Hamas, to discuss the formation of the proposed unity government.
Meanwhile, top PLO official Hana Amireh announced that Abbas is scheduled to meet with US Secretary of State John Kerry in the coming days in London to discuss the possibility of resuming the US-sponsored peace talks with Israel.
Abbas, during a meeting last week with US National Security Advisor Suzan Rice, indicated his readiness to return to the negotiating table with Israel.
Abbas conditioned the resumption of the talks on Israel's agreement to commit itself to discussing Palestinian demands for drawing the borders of a future Palestinian state.
Jamil Shehadeh, member of the PLO Executive Committee, said that Abbas told Rice that his top priority now was to form a unity government that would prepare for presidential and legislative elections in the Palestinian territories.
Abbas was quoted as saying that Hamas would have nothing to do with the unity government's program or policies. Abbas told Rice that the new government would report to him and would recognize Israel's right to exist and renounce violence.
Shehadeh described the meeting between Abbas and Rice as positive, adding that the PA president answered all her questions regarding the future moves of the PA leadership.