The Arab League, which has collected 70 million US dollar for the Palestinians, will pay the salaries of civil servants straight into their bank accounts.
A Hamas government spokesman said on Monday: "We have given the list and bank account details of the civil servants to the Arab League so that the salaries can be paid to them directly.
"We have had a lot of contact with the Arab League and secretary general Amr Mussa to find a solution to the financial crisis as quickly as possible" Ghazi Hamas said.
He could not say when the money would be transferred.
The money collected by the 22-member Arab League only covers a fraction of the needs of the Palestinian government, which requires about 240 million to pay its 160,000 employees for March and April.
Banks have been reticent to transfer money to government accounts, fearing sanctions from the United States, which like the European Union considers Hamas a terrorist organisation and has refused any dealings with its government.
After talks with the Palestinian president, Mahmoud Abbas in Paris on Friday, France proposed that a special World Bank account be created to channel foreign aid and pay civil servants.
Israel, meanwhile, suspended transferring the tax and custom revenues it collects on behalf of the Palestinians on imported goods destined to the West Bank and Gaza.
These represented over 50 million a month.
Hamas has had to approach Arab governments, such as oil-rich Saudi Arabia, and Iran to fill in its ever-growing financial gap.
Reconising Israel
The leader of its politburo, Khaled Meshaal, insists that Israel must withdraw from the Palestinian territories it captured in 1967, including east Jerusalem, before his movement can recognise the Jewish state.
Meshaal also said he wants to see Israel allow the return of refugees that fled or were expelled from their land in 1948-49 and 1967, release all Palestinian prisoners and dismantle the West Bank wall and every settlement.
PHOTO CAPTION
A Palestinian physician examines a new born baby inside a kindergarten at Shifa hospital in Gaza Strip May 1, 2006. (REUTERS)