"The danger of the PNA's demise is a realistic one if the international blockade goes on, and this, in turn, will lead to the total collapse of the situation in the Palestinian-administered territories," Haniyeh told a regional newspaper in an interview.
The Palestinian Authority was established in 1994 as a result of interim peace deals with Israel.
The United States and European countries cut off their aid to the Palestinian Authority in January 2006 following a landslide election victory by the radical Islamist movement Hamas, blacklisted by the West and Israel as a terrorist organization.
The Hamas-led government was this past March replaced by a government of national unity, established in association with the more moderate Fatah movement to stop the bitter infighting between the two major Palestinian parties.
PA President Mahmoud Abbas, who leads Fatah, hoped the move would prompt the international community to lift its sanctions, but they remain in place to this day.
Western nations have repeatedly said they will resume aid to the Palestinian Authority only if the PA government recognizes the Jewish State, renounces violence and reaffirms its commitment to earlier Palestinian-Israeli agreements - conditions Hamas leaders are reluctant to meet.
