President George W. Bush today will offer new support for the Fatah-led government of Palestinian President Mahmoud Abbas, marking a higher profile effort to resolve the Middle East conflict.
Mr Bush will announce $190 million in new aid to the Abbas government, US officials said.
He will reaffirm his vision of a Palestinian state at peace with Israel and call for a meeting this autumn to discuss ways to get the peace talks back on track.
After the violent takeover last month of the Gaza Strip by the Palestinian militant group Hamas, Western countries have rallied behind Abbas with promises of renewed aid.
Their hope is to isolate Hamas, branded a terrorist group by the United States, and to try to spur peace moves between Palestinian moderates and Israel.
But some political analysts said the strategy could backfire as Abbas will be viewed more as a collaborator of Israel and Washington.
White House spokesman Tony Snow said it was a "moment of choice" for the Palestinians in which they will need to choose between Abbas' vision and that of Hamas.
The regional meeting Bush will call for will be led by US Secretary of State Condoleezza Rice. It will include Israel, the Palestinian Authority and "neighbors in the region."
"The purpose of it will be to review progress toward building Palestinian institutions, look for ways to support further reforms and support the effort going on right now between the parties together," said a US official, who spoke on condition of anonymity.
The $190 million is for the current fiscal year 2007 that ends on September 30th.