Israel says it will not negotiate with a Palestinian government that includes militant groups calling for the destruction of the Jewish state.
The Israeli government statement follows the sweeping victory of the Islamic militant group Hamas in Palestinian parliamentary elections. Hamas has called for the destruction of Israel.
In Washington, President Bush said he does not believe Hamas can be a part of the peace process while it still has an armed wing.
He called the Hamas victory a wake-up call for the Palestinian leadership on the need for reform.
Meanwhile, Iran congratulated Hamas on its victory.
The so-called "Quartet" group of international mediators from Russia, the United States, the European Union and the United Nations pushing a peace plan for the Middle East said Palestinians voted for change. But, in a statement, the group said it believes the Palestinians' aspirations for peace and statehood remain unchanged.
The group also said all participants in finding a two-state solution to the Israeli-Palestinian conflict must renounce violence, disarm and accept Israel's right to exist.