Palestinian President Mahmoud Abbas says he will not accept a monthly tax transfer from Israel if it carries out its decision to deduct amounts the Palestinians pay to the families of prisoners and people killed in fighting with Israel.

Abbas on Wednesday accused Israel of trying to put political pressure on him and violating longstanding economic agreements. He said it would be the "final nail in the coffin" of those agreements and said he would not accept the funds if even "one penny" is deducted.

The monthly tax transfers cover about two-thirds of the Palestinian budget. Without those funds, Abbas' autonomy government will fall into a crisis and not be able to pay full salaries to its tens of thousands of employees.