Moderate Palestinian politician Mr Mahmoud Abbas has been elected chairman of the Palestine Liberation Organisation (PLO) in the wake of Mr Arafat's death this morning.
Mr Abbas favours an end to Palestinian militant violence and renewed peacemaking with Israel four years into a revolt begun in the Israeli-occupied West Bank and Gaza.
But the PLO's mainstream political faction, Fatah, elected hardliner Mr Farouk Kaddoumi, as its head. Mr Kaddoumi, long Fatah's Number 2, rejected Mr Arafat's interim peace deals with Israel a decade ago and has remained in exile abroad in protest.
Palestinian parliament speaker Mr Rawhi Fattouh was named interim Palestinian president. A special session of parliament swore Mr Fattouh into the caretaker position under Palestinian law. Mr Fattouh's key task will be to organise elections within 60 days.
Mr Fattouh (55) grew up in the Rafah refugee camp in Gaza. He left Gaza for studies abroad in the 1960s, joined Fatah in 1968 and returned from exile in 1994, along with Mr Arafat and other Palestinian officials.
In the first Palestinian general elections in 1996, he was elected to the parliament on a Fatah agenda. In 2003, he was appointed agriculture minister, and a year later was chosen speaker.
Mr Fattouh is a mid-evel Fatah activist and did not rise to prominence in parliament. He was chosen as speaker as a compromise candidate.
Mr Arafat had held all three top posts. Critics said he encouraged factionalism to avoid independent challenges to his rule. He formed the Fatah movement in 1958 and took over the PLO in 1969.
AP