Palestinian officials from Fatah and Hamas say the reconciliation talks in Senegal has restored 'an atmosphere of trust and mutual respect'.

Representatives of the two Palestinian factions issued a statement on Sunday following three days of negotiations mediated by Senegalese President Abdoulaye Wade.

Wade, also chairman of the Organization of the Islamic Conference (OIC), offered to mediate between the rival movements in March.

"The Palestinian representatives ... thank the mediator for managing to restore an atmosphere of trust and mutual respect, which allowed them to discuss the fundamental interests of the Palestinian people," said the communiqué signed by Hikmat Zeid for Fatah, Emad Khalid Alamy for Hamas and Senegal's Foreign Minister Cheikh Tidiane Gadio.

The statement said Dakar would resume contact with both sides to organize future meetings with the aim of "reconciling the Palestinian family".

Yemen tried to broker a reconciliation deal between the rival Palestinian movements in March but efforts broke down after disagreement over Fatah's precondition that Hamas should stop controlling Gaza.

Mahmoud Abbas, a Fatah leader, called for fresh talks on Thursday, appearing to soften his demand that Hamas relinquish control of the Gaza Strip before dialogue can resume.

Osama Hamdan, Hamas representative in Lebanon, described the Senegalese initiative to bridge the current gap between Hamas and Fatah movements as a practical test for seriousness of the intention for dialogue.

In a statement issued on Sunday, Hamdan said that it was left to the Senegalese president to decide to contact Hamas leader Khalid Mashaal and Abbas "because we believe that there should be a meeting at the leadership level to initiate an open dialogue on means of arranging the Palestinian home".

Hamas ended more than 40 years of Fatah's ascendancy with a surprising victory in parliamentary elections in 2006. Abbas dismissed the Hamas government after Hamas, accusing Fatah of planning a US-sponsored coup against it, took control of Gaza.