Hamas has accused Palestinian President Mahmoud Abbas of launching a coup after he announced a plan for early elections in an attempt to break a political deadlock and have crippling international sanctions lifted.

There were sporadic clashes when tens of thousands of Hamas and Fatah supporters took to the streets of Gaza and the occupied West Bank after Abbas's speech. At least six people were wounded by gunfire in Gaza, witnesses said.

Following months of factional violence that has raised fears of civil war Abbas, of Fatah, said parliamentary and presidential elections should be held as soon as possible but added efforts to form a unity government should continue.

"I have decided to call for presidential and parliamentary elections ... The crisis is getting worse," Abbas said in his speech, which was broadcast live.

Hamas, which is sworn to Israel's destruction, took office in March after beating the long-dominant Fatah in parliamentary elections, leading the United States and the European Union to cut financial aid to the Palestinian government.

Talks between Hamas and Fatah on forming a unity government have broken down repeatedly in recent months, mainly due to the militant Hamas's refusal to change its stance toward Israel.

Washington welcomed the speech by Abbas. British Prime Minister Tony Blair, who is expected to meet Abbas in the coming days on his ongoing trip to the Middle East, said the international community should support the moderate Abbas.

However, Hamas said the president had no authority to call early elections and was launching a coup. The movement's leaders said they would never allow early elections to be held but did not say how.

"It was a speech of defeat and submission to the Zionist enemy," senior Hamas lawmaker Mushir al-Masri told a crowd of Hamas supporters at a Gaza rally.

"Even if all the people of the world gather, they will not be able to bring down Hamas."

Hamas has insisted it would never recognise the Jewish state, making it unclear how any unity government could get off the ground and also satisfy the West.

The West demands any Palestinian administration renounce violence, recognise Israel and accept past peace deals to restart financial aid, urgently needed to reverse worsening poverty and economic contraction in Gaza and the West Bank.

The Palestinian basic law, which acts as a constitution, has no provision for calling early elections.

Fatah officials say Abbas can do so by issuing a presidential decree. Hamas says that would be illegal.

One senior Abbas aide said the polls might not be held until mid-2007 because of legal and technical factors.

Aides have said Abbas did not believe in a "two-headed government", arguing that Palestinians should be given the chance to choose between his programme of seeking a two-state solution with Israel and that of Hamas.

Abbas has previously said he would not stand for another term.

Reuters