"After consultations within the Palestinian delegation and brothers in Gaza and abroad it was decided to continue the Cairo meetings," Mahmoud al-Zahar told Reuters by phone from the Egyptian capital.
Palestinian official Qais Abu Leila had earlier said the delegation was considering withdrawing from the talks. An Israeli delegation arrived in Cairo for the negotiations, which the Palestinian embassy said had begun, at an Egyptian intelligence building.
Zahar condemned the killing earlier on Tuesday (local time) in the West Bank town of Hebron of two Palestinians whom Israel said had shot dead three Israeli youths in June, an attack that touched off a chain of events leading to the July-August Gaza war.
But he said Israel must not be given any pretext "to escape from commitments" of an August 26 truce that called for talks within a month on long-term border arrangements for the blockaded Gaza Strip.
The Palestinian delegation said the timing of the Hebron raid was intended to undermine the talks. "It comes as part of the stalling of the indirect negotiations to end the suffering of our people," a statement said.
Fifty days of conflict between Hamas and Israel has left devastation in some Gaza districts. More than 2,100 Palestinians, most of them civilians, were killed in the fighting, according to the Gaza health ministry.
Sixty-seven Israeli soldiers and six civilians in Israel were also killed. Israel launched the offensive on July 8 with the declared aim of halting cross-border rocket salvoes by Hamas and other militant groups.
The Palestinians want an end to the blockade of Gaza by Israel and Egypt, which view Hamas as a security threat and are seeking guarantees that weapons will not enter the small, densely populated territory of 1.8 million people.
The Palestinians are expected to press for construction of a sea port for Gaza and Israel's release of Hamas prisoners in the West Bank, possibly in a trade for the remains of two Israeli soldiers believed to be held by Islamist group.
At last month's talks, the two sides did not meet face-to-face but conducted their negotiations through Egyptian officials. Israel considers Hamas a terrorist organisation while Hamas does not recognise Israel's right to exist.
