Hamas has warned that the designation of Benjamin Netanyahu as the Israeli premier equals plumping for the "most dangerous" leader.

Netanyahu is the "most extremist and most dangerous" to be trusted with leadership, Hamas spokesman Fawzi Barhum said after the 'warmonger' of a political leader was mandated to determine the make-up of the new Israeli government, Haaretz reported.

The appointment "does not herald a period or peace or stability in the region," he added.

Netanyahu, who has warned he would join all forces against the Palestinian resistance movement, was named prime minister by President Simon Peres after his right-wing side Likud drew in the elections with the archrival Kadima party led by the allegedly 'less evil' Tzipi Livni.

The spokesman also said that the victory would not change "our position towards the Tahde'aa (Truce) and (Gilad) Shalit," the captured Israeli soldier.

The diehard Israeli leader is now left to either opt for a broad national unity government including Kadima or to sustain the right swing by siding with the right-of-the-center parties namely Yisrael Beiteinu whose leader Avigdor Lieberman's endorsement played a key role in Netanyahu's appointment.

Livni has, however, said she would not come under their hawkish tutelage calling a Likud-led government one lacking in 'political vision'.

While the Gaza Strip has barely sustained a devastating 23-day Israeli offensive, Netanyahu is feared to take Tel Aviv's military decimation against the Palestinians to extremes.

Meantime, the Palestinian Authority led by the Fatah movement in the West Bank set conditions for continuing peace talks with the new Israeli leadership.

"We will not deal with the Israeli government unless it accepts a two-state solution and accepts to halt settlements and to respect past accords," said PA spokesman Nabil Abu Rudeina.

Analysts, however, have called it a remote possibility for Netanyahu to approve of a Palestinian state.

HN/HAR