A series of emergency talks are being held to resolve a political crisis triggered by the resignation offer by Palestinian Prime Minister Ahmed Qurei.
Mr Qurei's resignation was sparked by a spate of kidnappings in the Gaza Strip.
Palestinian leader Yasser Arafat met Mr Qurei for several hours on Sunday to reject the move again, following the prime minister's insistence to go.
Mr Qurei wants Mr Arafat to grant him more powers to deal with the worsening security situation.
A state of emergency remains in force in Gaza.
The militants said they carried out Friday's kidnappings - including that of a senior police chief and four French aid workers - to protest against corruption within the Palestinian Authority and lack of reform of security services.
Mr Qurei described the security situation in Gaza as "a real disaster, a real catastrophe, and an unprecedented lawlessness" - and tendered his resignation and that of his government.
Mr Arafat responded by announcing an overhaul of security - cutting to three the number of services from eight - a long-standing demand of international mediators.
But the appointment of his nephew, Musa Arafat, as public security chief sparked off protests by hundreds of Palestinians in the Gaza Strip on Saturday night.
2 Prime Ministers resigning in under two years? serious questions have got to be asked.