Australia formally recognizes West Jerusalem as Israel's capital, reversing decades of Middle East policy, but will not move its embassy there immediately, Prime Minister Scott Morrison said on Saturday.
"We have made a decision to start the work now" to identify a suitable site for an Australian embassy in West Jerusalem, Morrison said.
"We look forward to moving our embassy to West Jerusalem when practical", he told reporters in Sydney.
But Prime Minister Scott Morrison, an evangelical Christian, said in October that he was "open-minded" about recognizing Jerusalem, a la President Trump.
The contentious inauguration in May, timed to coincide with the 70th anniversary of Israel's independence, escalated clashes between Israeli troops and Palestinians in the Gaza Strip.
Palestinians generally object to countries unilaterally recognizing Jerusalem as the capital of Israel rather than letting the peace negotiations to determine the status and the fate of the city.
In a speech to the Sydney Institute, Morrison said his government will also recognize East Jerusalem as Palestine's capital, but only after a settlement has been reached on a two-state solution.
Opposition leader Bill Shorten said the decision to recognize west Jerusalem as Israel's capital but not move the embassy there was a "humiliating backdown" from the October byelection campaign.
US President Donald Trump drew global criticism previous year when he reversed decades of American foreign policy by recognising the ancient city as Israel's capital.
The Palestinian leadership on Saturday described the move as "irresponsible", saying it violated global law.
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O'Connor's decision could set off a scramble in Congress , where some lawmakers want to step in to defend the decision . O'Connor is a conservative Republican appointee who has previously blocked other Obama-era policies.
The prime minister said it was in Australia's interests to support "liberal democracy" in the Middle East and took aim at the United Nations, which he said was a place Israel is "bullied".
Morrison earlier Saturday announced his country's move on Jerusalem.
Morrison said his country should use its "incredible influence" with Israel in an effort to bring to an end a "rancid stalemate" in the region, the BBC reported.
Refusing to include east Jerusalem, home to the city's most important religious sites, is likely to upset Israeli nationalists who dominate Prime Minister Benjamin Netanyahu's coalition.
On Thursday, the Israeli army launched raids into the Palestinian city of Ramallah after a Palestinian shot dead two Israeli soldiers at a bus stop in the occupied West Bank.
The Palestinians' Erekat said the move stemmed from "petty domestic politics".
Community groups have responded to the announcement, with the Australia Palestine Advocacy Network saying they were "dismayed" and the move would slam the door on peace.
"This is a decision which is all risk and no gain", she said, adding it puts Australia "out of step" with the global community.
"This sabotages any real possibility for a future just agreement".
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