(Adds Haniyeh on talks to resume within days)

GAZA, Nov 8 (Reuters) - Palestinian Prime Minister Ismail Haniyeh of Hamas on Wednesday called for a suspension of talks to forge a unity government in the wake of Israeli shelling of a Gaza town that killed 18 civilians.

But Haniyeh later clarified that he expected negotiations with moderate President Mahmoud Abbas's Fatah faction to resume within days. An Abbas aide said a deal could be imminent.

"Our aim in suspending the dialogue was to concentrate on what happened in Beit Hanoun," Haniyeh told reporters, referring to the site of the artillery barrage, which prompted Palestinians militants to vow revenge attacks against Israel.

"I want to assure our people that we will resume the dialogue over the formation of the unity government within days," he said.

Palestinians hope a unity government will lead to a lifting of Western sanctions imposed on the Hamas government over its refusal to recognise the Jewish state and renounce violence.

"We are so close to forming a new government," said Nabil Abu Rdainah, a senior Abbas aide. "We hope we will be able to finish very soon. The most important thing now is that there be real world pressure on Israel to stop these massacres."

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