It was reported earlier that Hamas had announced their backing for moderate Mahmoud Abbas to become Palestinian President, but that Fatah had declared Marwan Baghouti (currently in jail) might run as well. Now, Baghouti has said he will not run and has endorsed Abbas, and the various wings of Fatah's militant al'Aqsa Martyrs' Brigade faction have come together to issue a joint statement backing Abbas.
Mahmoud Abbas, who formerly held the post of Prime Minister under Yasser Arafat but resigned in disgust over Arafat's stonewalling of peace efforts, is the new Chairman of the PLO and is now the leading candidate for the Presidency. He has consistently and outspokenly opposed the armed intifada. Israeli PM Ariel Sharon has said that he is ready to meet with Mahmoud Abbas, and that Israel would keep its troops away from Palestinian towns during the election (scheduled for January 9) "to enable them to conduct their elections with as little interference as possible". Meanwhile, the Palestinian Authority has disbanded a Gaza security unit, the Department of Protection and Security, citing human rights abuses and criminal activities, as part of the process of overhauling the Palestinian security apparatus.
This is looking more and more promising for the prospect of peace between Israel and Palestine, and for an end to the intifada. I do wonder, however, how well it's going to work having an independent Palestinian nation that's in two completely disjoint parts separated by much of Israel.