Heniyye's press adviser Tahir en-Nunu, said in a written statement, "Heniyye, Hamas and Fatah, Egypt's intermediate findings, in morning, announcing agreement", he used statement.
"An agreement was reached today between Hamas and Fatah under Egyptian sponsorship", a statement from Hamas leader Ismail Haniya's office said, without giving further details.
Egypt has helped the two movements to form a power-sharing unity government in Gaza and the West Bank.
The PA government cabinet said on Tuesday that if Hamas and Fatah achieve an agreement in Cairo, it is prepared to take full responsibility for Gaza, the official PA news site Wafa reported.
The move had been a key demand of Palestinian President Mahmoud Abbas whose Fatah-dominated Palestinian Authority controls the West Bank.
This article has been adapted from its original source.
The latest reconciliation efforts come as US President Donald Trump has sought to revive peace talks between Israel and the Palestinians and met separately with Abbas and Netanyahu on the sidelines of the United Nations General Assembly in NY last month.
According to BBC, Egypt has been brokering reconciliation talks in Cairo.
Multiple previous attempts at reconciliation have failed but the latest Egyptian-led push received a major boost last month when Hamas agreed to cede civil power in Gaza.
Under the deal, 3,000 Fatah security officers will join the Gaza police force.
The deal would see Hamas, which has the most powerful armed Palestinian faction with an estimated 25,000 well-equipped fighters who have fought three wars with Israel since 2008.
The crossing has remained largely closed in recent years. "Unity and national reconciliation among the Palestinian people are our strategic option for moving forward".
Palestinian Prime Minister Rami Hamdallah (right) and Hamas chief Ismail Haniyeh hold hands in Gaza City October 2, 2017.
Reconciliation could also pose a dilemma for global efforts to reach an Israeli-Palestinian peace deal since Hamas has not recognised Israel, unlike the Abbas-led Palestine Liberation Organisation.