Hamas spokesperson Abdul-Latif Qanou said that any resumption of the security coordination is rejected and only benefits the Israeli occupation, adding that it harms the resistance and the national reconciliation.
Any reticence about taking responsibility for the collapse of terror tunnels was swept aside on Monday, as Prime Minister Binyamin Netanyahu and Defense Minister Avigdor Liberman hailed the demolition of a tunnel dug from Gaza into southern Israel as the work of "breakthrough technology".
Most belonged to Islamic Jihad, one of several groups in Gaza that are classified as terrorist organizations by the US and European Union.
Article cited allegations that Abbas vowed not to appoint Hamas figures to his cabinet if they did not recognise Israel.
However, Eitan Dankot, a former Coordinator for Government Activities in the Territories, told Army Radio it would be a mistake to pin hopes for a two-state arrangement on the current Palestinian leadership.
"We are not interested in an escalation, but we are ready for all scenarios" he said.
On the Israeli side, the tunnel terminated near the Israeli community of Kibbutz Kissufim.
"The terror organization Hamas is responsible for everything that occurs in the Gaza Strip or emanates from there".
The school was immediately closed and the tunnel sealed, according to the statement.
Hamas is due to hand control of Gaza back to the Palestinian Authority by 1 December under the agreement.
They have also said it must recognize Israel.
Hamas, which rules Gaza, said in a post on Twitter that that the attack constitutes "a new war against Gaza people".
The Abbas-led Palestine Liberation Organisation has recognized Israel, but Hamas has not.
The two groups have governed the occupied Palestinian territories of the West Bank and the Gaza Strip respectively ever since.
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