"My constitutional powers, granted by the basic law, will be used in (the appropriate) time," he said at a news conference, in a clear reference to a possible presidential edict to dissolve the government.

"The dialogue now does not exist," Abbas, speaking hours before a scheduled meeting with visiting US Secretary of State Condoleezza Rice, said about talks with Hamas.

Rice is on a regional visit partly aimed at bolstering the moderate Abbas in his power struggle with Hamas, an Islamic group dedicated to Israel's destruction.

"It is very necessary that we increase our efforts to end this crisis, and reach a solution towards forming a new government," Abbas said.

"I hope to reach this end as soon as possible because the people have been suffering for the past seven months and cannot endure further suffering," he said.

Abbas pointedly did not refer to the formation of a unity government, an issue under discussion with Hamas for weeks in talks that have reached a stalemate over policy towards Israel.

Ismail Rudwan, a Hamas spokesman, urged Abbas to continue unity talks. "Hamas warns against any attempt to carry out a coup. The alternatives will be painful," Rudwan said.

Some officials from Abbas's Fatah faction have urged him to dissolve the Hamas-led government and form a new administration, a move that could lead to civil war.

Israel and Western donor nations cut off funds to the Palestinian Authority, deepening economic hardship in the West Bank and Gaza, when Hamas established a government in March after winning election in January.

Hamas has rejected international demands to renounce violence and recognise Israel and existing interim peace deals.

Rice, who has urged an end to Palestinian in-fighting that has killed 12 people in the last week, will meet Israeli leaders after talks with Abbas in the West Bank city of Ramallah.

During her regional trip, she also hopes to win Arab support for the embattled governments in Iraq and Lebanon, where 34 days of fighting between Israel and Hizbollah guerrillas ended in a U.N.-sponsored ceasefire on August 14.

Prospects for renewed peacemaking with the Palestinians and concerns over Iran were likely to be high on the agenda of Rice's planned talks with Israeli Prime Minister Ehud Olmert.