The Beijing Declaration was signed at the closing ceremony of a reconciliation dialogue among 14 Palestinian factions held in China's capital from July 21-23, according to the readout.
Previous efforts by Egypt and other Arab countries to reconcile Hamas and Fatah have failed to end 17 years of power-sharing conflict that have weakened Palestinian political aspirations, and it remains to be seen whether this deal will survive the realities on the ground.
The meeting was held amid attempts by international mediators to reach a ceasefire deal for Gaza, with one of the sticking points being the "day after" plan - how the Hamas-run enclave will be governed once the war that began on October 7 ends.
Senior Hamas official Hussam Badran said the most important point of the Beijing Declaration was to form a Palestinian national unity government to manage the affairs of Palestinians.
"This creates a formidable barrier against all regional and international interventions that seek to impose realities against our people's interests in managing Palestinian affairs post-war," Badran said.
Israeli Prime Minister Benjamin Netanyahu has said his goal is to destroy the Iran-backed Hamas group and opposes it having any role in a postwar Gaza administration.
"Instead of rejecting terrorism, (Fatah leader) Mahmoud Abbas embraces the murderers and rapists of Hamas, revealing his true face," Israeli Foreign Minister Israel Katz said on X.
"In reality, this won't happen because Hamas' rule will be crushed, and Abbas will be watching Gaza from afar. Israel's security will remain solely in Israel's hands."
Badran said the national unity government would manage the affairs of Palestinians in Gaza and the West Bank, oversee reconstruction and prepare conditions for elections.
Hamas runs Gaza and Fatah forms the backbone of the Palestinian Authority, which has limited control in the Israeli-occupied West Bank.
There has been no immediate comment from Fatah.
Details of the agreement did not set out a time frame for forming a new government.
Nonetheless, the agreement marks a diplomatic coup for Beijing and its growing influence in the Middle East after it brokered a breakthrough peace deal between longstanding regional foes Saudi Arabia and Iran in 2023.
"The core achievement is to make it clear that the Palestine Liberation Organisation is the sole legitimate representative of the Palestinian people," Chinese Foreign Minister Wang Yi said, according to the readout.
China sincerely hoped the factions would achieve Palestinian independence at an early date, and Beijing was willing to work with them to implement the declaration, Wang said.
Hamas and Islamic Jihad are not members of the PLO, the Palestinians' highest decision-making body, but they demand that any unity deal includes holding an election for the PLO parliament to secure their inclusion.
Rival factions Hamas and Fatah first met in Beijing in April to discuss reconciliation efforts to end about 17 years of disputes, the first time a Hamas delegation was publicly known to have visited China since the war in Gaza began.
The long-feuding Palestinian factions have previously failed to heal their political disputes after Hamas fighters expelled Fatah from Gaza in a short war in 2007.
