Palestinian President Mahmoud Abbas on Sunday appointed senior Fatah official Mohammad Shtayeh as a new prime minister, according to the official Wafa news agency.
Shtayeh, a member of Fatah's Central Committee, will replace Rami Hamdallah, who tendered his resignation in January upon "recommendations" from Fatah group.
Fatah argued that the move was taken over "intransigence" of its rival group Hamas and "its refusal to deal with the national reconciliation government."
Hamas and Fatah have been at odds since the former seized control of the Gaza Strip in 2007 from Fatah after street fighting.
Born in 1958 in a village near the northern West Bank city of Nablus, Shtayeh is a Palestinian politician and economic expert.
He served as a minister of public works and housing between 2005-2006 and 2008-2010 and head of the Palestinian Economic Council for Development and Reconstruction.
Shtayeh holds a doctorate in economic development from the University of Sussex, UK, and worked as a professor and dean at Birzeit University.