Prime Minister Salam Fayyad is seen as a reformerPalestinian President Mahmoud Abbas has sworn in a new emergency government that excludes his Islamist rivals, Hamas, who have seized control of Gaza.
Mr Abbas also issued decrees enabling new Prime Minister Salam Fayyad to rule without parliamentary approval and outlawing all of Hamas's armed forces.
Mr Fayyad's predecessor, Ismail Haniya, has said the new government is illegal.
Israel's government said a non-Hamas administration would create a fresh opportunity for a partnership in peace.
The US has also said there will be no obstacles to re-engaging with the new Palestinian government. Mr Abbas sacked Mr Haniya, a Hamas leader, on Thursday after factional fighting left more than 100 people dead in Gaza.
Shortly afterwards, the Hamas movement said it had taken over full control of Gaza, as its gunmen ransacked Fatah offices and arrested or killed its fighters.
Mr Abbas also issued decrees enabling new Prime Minister Salam Fayyad to rule without parliamentary approval and outlawing all of Hamas's armed forces.
Mr Fayyad's predecessor, Ismail Haniya, has said the new government is illegal.
Israel's government said a non-Hamas administration would create a fresh opportunity for a partnership in peace.
The US has also said there will be no obstacles to re-engaging with the new Palestinian government. Mr Abbas sacked Mr Haniya, a Hamas leader, on Thursday after factional fighting left more than 100 people dead in Gaza.
Shortly afterwards, the Hamas movement said it had taken over full control of Gaza, as its gunmen ransacked Fatah offices and arrested or killed its fighters.
'Dishonourable events'
The new government took the oath of office before Mr Abbas, the leader of Fatah, in the presidential compound in the West Bank city of Ramallah.
The new government took the oath of office before Mr Abbas, the leader of Fatah, in the presidential compound in the West Bank city of Ramallah.
Mr Fayyad, an independent who served as finance minister in the previous administration, pledged to protect the interests of the Palestinian people.
"I swear by God that I will be faithful to the homeland and its sanctities, to the people and its national heritage, to respect the constitution and the law, and to fully protect the interests of the Palestinian people," he said.
The former World Bank official is well respected by the international community for his past efforts in combating corruption and promoting transparency.
After the ceremony, Mr Fayyad called for unity within the Palestinian Territories.
"We insist on organic unity, both administrative and political, of the two parts of the homeland - the Gaza Strip and the West Bank," he said.
He also said his cabinet would work to "put an end to the anomaly of the dishonourable events", referring to Hamas taking control of Gaza.
"I swear by God that I will be faithful to the homeland and its sanctities, to the people and its national heritage, to respect the constitution and the law, and to fully protect the interests of the Palestinian people," he said.
The former World Bank official is well respected by the international community for his past efforts in combating corruption and promoting transparency.
After the ceremony, Mr Fayyad called for unity within the Palestinian Territories.
"We insist on organic unity, both administrative and political, of the two parts of the homeland - the Gaza Strip and the West Bank," he said.
He also said his cabinet would work to "put an end to the anomaly of the dishonourable events", referring to Hamas taking control of Gaza.
BBC News
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