In addition, the Islamic movement Hamas is boycotting the election.
The militant Islamic movement Hamas, which was angry about the July postponement, said it would take part in the January elections.
But the two sides have yet to agree on the fate of some 3,500 Palestinian prisoners, many of whom follow the Islamic militant movement Hamas.
The tiny Palestinian territory has been under a tightened Israeli blockade ever since the Islamist movement Hamas came to power.
But he also warned that the radical Islamic movement Hamas, taking part in the elections for the first time, could win if Fatah failed to unite.
He also called on the Islamist movement Hamas to recognize Israel after reaching its reconciliation agreement with Fatah.
Netanyahu will be pleased at Obama's exclusion of the Palestinian movement Hamas as a negotiating partner.
A few hundred supporters of the Islamic movement Hamas marched behind a black banner to the homes of the dead, vowing revenge.
Nowhere is the challenge greater than in the Gaza Strip, where the militant Islamic movement Hamas, which opposes the accord, has a strong base.
Since its creation in 1987, the Islamic movement Hamas has stuck firmly to this basic principle.