GAZA, May 20 (Reuters) - Palestinian factions Fateh and Hamas have agreed to hold new consultations on forming a unity government with the aim of overcoming bitter rivalry and holding elections, officials said on Sunday.

Numerous previous attempts to reconcile had hit obstacles. Last year the rivals signed an agreement that was meant to bring the formation of a unity government and a parliamentary election on May 4, but the negotiations faltered.

Hamas and Fateh have been rivals for years. In 2007, Hamas seized control of the Gaza Strip in a brief civil war, leaving Fateh dominant in the West Bank.

Hamas has refused to recognize Israel's right to exist or renounce violence, while Fateh has supported interim peace accords with the Jewish state. It was unclear how the latest agreement would take shape given the discrepancy.

An Egyptian official in Cairo, where the deal was brokered, told Reuters that the leaders of the two groups agreed on Sunday to resolve sticking points in the national unity pact.

The Hamas and Fateh teams will meet again on May 27. (Reporting by Nidal al-Mughrabi)