The Palestinian cabinet is meeting for its first working session amid a funding crisis following the election victory of the Hamas militant group.
Ministers are expected to discuss an emergency plan for its first three months of a Hamas-led government.
The meeting comes as Foreign Minister Mahmoud Zahhar denied the contents of a leaked letter to the United Nations.
Reports had said the Hamas letter spoke about a possible two-state solution to the Israeli-Palestinian conflict.
The two-state formula, enshrined in the international peace plan known as the roadmap, would see the establishment of an independent Palestinian state living in peace beside Israel.
In a BBC interview, Mr Zahhar said leaked copies of the letter did not represent Hamas views.
Hamas denies Israel's legitimacy and has refused to bow to international pressure to follow the path of non-violence and adopt past peace deals.
In a separate development, Israel's president is preparing to formally ask interim Prime Minister Ehud Olmert to form a government, after his Kadima party came top in elections last week.
A presidential statement said the announcement would be made at a news conference on Thursday.
Mr Olmert will then have six weeks to form a government - for which he will need several coalition partners.
On Tuesday he said the left-centre Labour Party, which supports his plan to withdraw from parts of the occupied West Bank, would be his most senior partner in government.