Hamas sweeps to power

Islamist group Hamas has swept to power with what is looking increasingly like a like a stunning victory in the Palestinian elections.

The ruling Fatah Party, which has dominated Palestinian politics for decades looks like it will find itself out of office completely after a wave of popular support for Hamas - who had campaigned on an anti-corruption ticket.

Early exit polls had predicted a narrow win for Fatah.

But while the results have yet to be announced, officials from both sides confirm the Islamist group has won an outright majority in the poll - some are claiming that Hamas has won at least 70 of the 132 seats in parliament.

One senior Fatah official has been quoted as saying that President Mahmoud Abbas has already asked Hamas to form a government.

A Hamas only government is sure to be a big test of the peace process in the Middle East, as the US and Israel have previously said they won't deal with the militant group while is refuses to recognise Israel.

Palestinian Prime Minister Ahmed Qorei resigned early on Thursday afternoon after it became increasingly clear that Hamas had taken a majority of seats in the election.

As he confirmed his resignation, he said: 'This is the choice of the people. It should be respected. If it's true, then the president should ask Hamas to form a new government.'

Reactions to the election outcome have been mixed.

The European Commission says it would work with any Palestinian government that used peaceful means.

Italian Prime Minister Silvio Berlusconi called it a 'very, very, very bad result.', while UN Secretary-General Kofi Annan congratulated the Palestinian people on the peaceful legislative elections, which he said was an important step toward a Palestinian state.

Turnout for Wednesday's vote was high, with nearly 78 per cent of 1.3 million eligible voters casting their votes.

International observers, led by former American President Jimmy Carter and former Swedish Prime Minister Carl Bildt, reported no major problems with fraud.