But Zahar cautioned that any such suspension would be conditional on the halting of "aggression" by Israel.

In a speech, Israeli Prime Minister Ariel Sharon said Israel would halt offensive military operations in Palestinian areas if calm prevailed.

Later, Israeli forces killed an Islamic Jihad member in a West Bank house raid.

Zahar, a Hamas leader in the Gaza Strip, met interim Palestinian leader Mahmoud Abbas for talks before speaking to reporters on Thursday evening.

He said Hamas would begin negotiations with officials from the Fatah movement, probably next week, over halting attacks on Israel ahead of Palestinian elections on 9 January.

Zahar said: "Israel is responsible for all the violence in the area, and we are in a position of self-defence.

"If the Israelis stop their aggression against the Palestinian people, I think that through negotiations... we can reach a final agreement."

Hamas has called on its members to boycott the elections of a new leader of the Palestinian Authority, but according to Fatah officials who attended Thursday's meeting, Zahar demonstrated willingness to work with the new administration.

Abbas, also known as Abu Mazen, has held several talks with Hamas leaders in an attempt to secure a ceasefire since the death of Yasser Arafat on 11 November.

In a speech to journalists on Thursday, Mr Sharon said Israel would halt offensive military operations in Palestinian areas if calm prevailed.