The United States has welcomed the selection of a new Palestinian prime minister, saying the choice of academic Rami Hamdallah comes at a "moment of challenge" and a "moment of opportunity."

Palestinian President Mahmoud Abbas asked Hamdallah to form a new Palestinian Cabinet in West Bank, replacing Salam Fayyad, who announced his resignation in April and formally leaves this month.

U.S. Secretary of State John Kerry congratulated Hamdallah in a statement Sunday, saying the United States can work with the new government on a path to a negotiated two-state settlement with Israel.

The Islamic militant group Hamas, which controls the rival Gaza Strip, has rejected the appointment.  A spokesman calls it "illegal" and says it will not help bring Palestinian unity.
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