The official Palestinian news agency says President Mahmoud Abbas has accepted the resignation of his newly appointed prime minister.

Rami Hamdallah had served only two weeks when he abruptly resigned last week over a conflict of authority. Mr Abbas initially asked him to reconsider.

Mr Abbas's spokesman Nabil Abu Rdeneh said the resignation was accepted. Mr Hamdallah will remain head of a caretaker government until a replacement is found.

Mr Abbas appointed Mr Hamdallah, a university dean and political novice, earlier this month in an apparent move to consolidate power. Mr Hamdallah replaced internationally known economist Salam Fayyad, who had clashed with Mr Abbas. The latest twist could prove a political distraction as Mr Abbas is focusing on a US push to restart peace negotiations with Israel.