Qatar will pay the salaries of 40,000 Palestinian education workers for several months, the Palestinian prime minister said on Sunday, helping to ease an economic crisis caused by a Western aid boycott.

"Qatar will pay the salaries of all the education employees, who are 40,000. This amount will total $22.5 million per month for the coming several months starting now," Ismail Haniyeh said, adding that Qatar was also studying giving an additional $7 million per month to the Palestinian health sector.

Haniyeh told reporters in Doha a Qatari delegation would travel to the Palestinian territories in 10 days to discuss setting up an Islamic bank with a $50 million capital to finance development there.

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Qatari officials were not immediately available for comment.

The Hamas-led Palestinian government has been brought to the brink of financial collapse due to a Western aid boycott over its refusal to recognize Israel, renounce violence and embrace interim Israeli-Palestinian peace deals.