Palestinian president Mahmoud Abbas has asked caretaker prime minister Rami Hamdallah to stay on, tasking him on Tuesday with forming a new government, a spokesman said.

"Abbas on Tuesday met head of the caretaker government Rami Hamdallah and tasked him again with forming a government," the Palestinians' Wafa news agency quoted Abbas spokesman Nabil Abu Rudeina as saying.

Abbas accepted Hamdallah's resignation on June 23 after barely two weeks on the job, but asked him to stay on a caretaker basis until a new premier could be appointed.