Australia will recognise West Jerusalem as the capital of Israel but will not immediately move its embassy from Tel Aviv.
Prime Minister Scott Morrison will also acknowledge the aspirations of Palestinians for a future state with its capital in East Jerusalem.
If, in the future, Jerusalem’s status is finalised under a peace settlement, Australia says it could move its embassy then. In October, Morrison said he found arguments in favor of moving Australia’s diplomatic presence from Tel Aviv to be “persuasive.”
There was support from the Israeli government, but Palestinian leaders said Australia risked becoming an “international pariah.”