CAIRO (Reuters) - Palestinian President Mahmoud Abbass Fatah group accused rival Hamas of arresting dozens of Fatah activists in the Gaza Strip on Monday. The recriminations threaten to derail Egyptian-mediated efforts to reconcile the two Palestinian groups. A Hamas spokesman said there had been no arrests and accused Fatah of distortion aimed at undermining the talks. Arrests and counter arrests by forces loyal to the two groups have hampered efforts to restore political unity and boost prospects for a resumption of peace-making with Israel. Senior Fatah lawmaker Ashraf Gomaa told Reuters by telephone from Gaza that at least 90 of those arrested on Monday had been identified, but that the Hamas sweeps were continuing. We urge the Egyptian leadership to take a stronger position towards these actions by Hamas, which create doubt among our people over the importance of, and the need for, these continued talks in Cairo, Gomaa said. A top Abbas aide said that Palestinian security forces had arrested about 10 Hamas operatives in the West Bank in the past several days on suspicion of planning attacks. We are now convinced that (Hamas) is not ready to reach an agreement in Cairo, Tayyeb Abdel-Rahim said. These Fatah positions have only one aim, which is Fatahs desire to foil the dialogue, Hamas spokesman Sami Abu Zuhri told Reuters by phone from the Gaza Strip. Gomaas remarks came hours before a spokesman for Fatahs security forces in the West Bank, where Fatah holds sway, announced that 100 Hamas members who do not pose a threat to general security and the rule of law would be released on Monday and Tuesday. Sources close to the reconciliation talks in Cairo said the latest round on Sunday had stalled due to disagreements over a mechanism to end factional arrests. Both groups deny the arrests are politically motivated. Hamas and Fatah delegations held talks on Monday with Egyptian intelligence chief Omar Suleiman, who has led Egypts efforts to heal the rift between both parties for nearly a year. Egypt, frustrated at the lack of progress, has set a July 7 deadline for signing a compromise deal, a Palestinian source close to the talks said. Egypt made clear to the two factions there could be no more talks in Cairo beyond July if they continued to fail to reach an agreement, the official, who asked not to be named, said. In Mondays meeting, Suleiman urged both sides to resolve their outstanding issues as swiftly as possible, sources close to the talks said, and the Hamas and Fatah delegations were scheduled to hold bilateral talks on Monday. The sources added that the issue of the arrest was expected to dominate the meeting. Hamas had previously warned a signing would not be possible unless Fatah ended arrests against its members in the West Bank and released a significant number of the 920 Hamas supporters held by Fatah. It has dismissed previous releases as being cosmetic and usually followed by fresh arrests. Fatah has said Hamas is holding nearly 300 of its men in jails in the Gaza Strip, which is run by the group. A deal would aim to gradually end the divisions by setting up a joint committee to handle the reconstruction of Gaza, largely destroyed in an Israeli offensive in December, prepare for presidential and parliamentary elections in Gaza and the West Bank, and reform Palestinian security services.