Hamas spokesman Fawzi Barhoum confirmed on Saturday that Mr Haniya had been selected as the politburo chief.
Until Hamas accepts to give up its control of Gaza, Palestinian President Mahmoud Abbas issued on Saturday a decree, which exempts the Gazan population from paying all taxes and fees to official departments and establishments of the Palestinian Authority (PA.). An Israeli-Egyptian border blockade has largely sealed Gaza since 2007.
The Israeli leader posted a video on Sunday that showed him throwing a Hamas policy paper, which attempted to soften the group's image, into a trash can.
The Palestinian "martyrs' fund" pays about 35,000 families of Palestinians killed and wounded in the long-running conflict with Israel, and says the money amounts to welfare payments to victims. The Palestinian group also continued to back the "armed struggle" against Israel. In 1992, he was exiled by Israel, along with scores of Hamas leaders, to southern Lebanon for about a year.
However, the agreement soon collapsed when Hamas violently seized control of the Gaza Strip in June 2007. Abbas has been an outspoken opponent of violence, saying it undercuts Palestinian interests. Haniyeh has survived several Israeli assassination attempts in the past, and before becoming Defense Minister Avigdor Lieberman threatened to have Haniyeh killed "within 48 hours" unless he returned the bodies of two Israeli soldiers, and two civilians who may still be alive.
Netanyahu claimed that this news may seem positive, but in reality Hamas has no intention of seeking common ground with Israel.
The Palestinian militant group Hamas has announced that Ismail Haniya has been chosen as its new overall leader.
He was born in the Shatti refugee camp in western Gaza City in 1963. He was the private secretary of Hamas' founder and spiritual leader Ahmed Yassin.
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Ismail Haniya, a former prime minister of the Palestinian Authority, could help bring Hamas back into the worldwide conversation. He resigned as prime minister after Hamas and Fatah agreed to form a unity government in 2014 - a government that has never taken hold.
Haniyeh, who served as Mashaal's deputy for the past four years, most recently traveled overseas in September.
Netanyahu not only clearly explains why CNN and the Times were reporting fake news but provides a nice finishing touch by tossing the Hamas report into a trash bucket.
Haniya, 53, from the Shati refugee camp in Gaza City, is expected to move to Qatar.
"But I think Hamas has made a gesture and Ismail Haniya is an open person, he is willing to talk and meet".
Haniyeh, who also served as Mashaal's deputy for four years, is a familiar figure in Gaza, a tiny piece of land on the Mediterranean which is home to two million people.
Israel had no immediate comment.