A senior British official says the European Union could announce next week a temporary suspension of aid to the Hamas-led Palestinian government because of the Islamic group's refusal to renounce violence and recognize Israel.
The official, who spoke to reporters on condition of anonymity, said EU foreign ministers could agree to the move at their meeting in Brussels Monday, after the European Commission conveys its decision to suspend aid.
An EU official said the bloc is not currently authorizing any payments to the Palestinian Authority.
The 25-nation European bloc is the biggest donor of aid to the Palestinians.
The European Union, the United States and Israel consider Hamas a terrorist organization.
The United States has suspended all aid to the new Hamas-led Palestinian government. But Washington says it is working to channel humanitarian assistance to the Palestinian people through the United Nations and other international agencies.
Israel also has suspended the monthly transfer of millions of dollars in tax revenues that it collects for the Palestinians.
Some information for this report was provided by AFP, AP and Reuters.