The Fatah party of Palestinian Authority President Mahmoud Abbas and Hamas, which governs Gaza, have agreed a reconciliation deal, officials say.
Under the Egyptian-brokered deal, an interim government will be formed and a date fixed for elections.
The factions have been divided for more than four years, with Hamas in power in Gaza and Fatah running the West Bank.
Palestinian and Egyptian spokesmen told news agencies of the deal but a formal announcement has not yet been made.
Thousands of Palestinians protested in Gaza this month, calling for reconciliation.
The protests were inspired by uprisings elsewhere in the Middle East and North Africa.
The split between the two factions occurred when violence erupted a year after Hamas won Palestinian elections in 2006.
Palestinian rivals Fatah and Hamas 'agree to end rift':