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"Hamas has officially offered to sign the Egyptian document under the condition that the signing doesn't take pace in Egypt," Abbas said in a live speech on the 45th anniversary of his Fatah party's establishment.
"We have rejected this and the reconciliation agreement will only be signed in Egypt, nowhere else," Abbas said, adding that Hamas' offer was "immoral."
Egypt has suspended its efforts to reconcile Hamas, which took over Gaza violently from pro-Abbas forces in 2007, and Fatah after the Islamic movement refused to sign the reconciliation proposal submitted by Cairo.
Hamas said the Egyptian initiative did not emphasize results it has reached with Fatah in a series of talks Cairo sponsored between February and September.
Abbas accused Hamas of "blocking the reconciliation for factional and regional considerations," referring to Hamas' ties with Syria and Iran.
On the Israeli level, Abbas said in his speech that the Palestinian National Authority (PNA) "still extends hand to reach a fair peace to end the Israeli occupation that started in 1967."
Abbas reiterated with assertion that East Jerusalem will be the capital of the future Palestinian statehood.
"Anybody who thinks that there is one Palestinian who will make a concession on Jerusalem or give it up is mistaken."