CAIRO (AP) – A Hamas spokesman says Palestinian factions trying to hammer out a power-sharing agreement are struggling to reconcile their differences toward peace talks with Israel.

Fawzi Barhoum says the disagreement is one of the key hurdles holding up the formation of a new unity government between the militant Hamas group and the more moderate Fatah faction.

Egypt, which is mediating the talks in Cairo, has set a Saturday deadline to produce an agreement.

Negotiators say Egypt’s powerful intelligence chief Omar Suleiman will meet the delegates Thursday to try to reconcile their differences. They spoke on condition of anonymity because they were not authorized to talk to the press.

Egypt hopes to host a signing ceremony by the end of March.