"Until Israeli and Palestinian statehood is permanent, peace can only be temporary," he told reporters. 

"Australia will recognise the right of the Palestinian people to a state of their own."

Several countries, including France, Britian and Canada, have announced plans to recognise statehood for Palestinians since Israel launched a bombardment of Gaza nearly two years ago in response to the Hamas attacks.

Albanese added that he had received assurances from the Palestinian Authority that there would be "no role for the terrorists of Hamas in any future Palestinian state".

"There is a moment of opportunity here, and Australia will work with the international community to seize it," he said.

Israel has condemned decisions by countries to support a Palestinian state, saying it will reward Hamas, the militant group that governs Gaza. 

Netanyahu told reporters on Sunday that most Israeli citizens were against establishing a Palestinian state as they thought that would bring war and not peace, even as thousands of protesters flooded the streets of Tel Aviv, opposing his plan to escalate the nearly two-year war and seize Gaza City.

"To have European countries and Australia march into that rabbit hole just like that, fall right into it ... this is disappointing and I think it's actually shameful but it's not going to change our position," Netanyahu said.

Albanese has been calling for a two-state solution, with his centre-left government supporting Israel's right to exist within secure borders and Palestinians' right to their own state.

"I've said it's a matter of when, not if," Albanese told reporters on Saturday in New Zealand on his government's stance on a Palestinian state.

"For a long period of time, there's been a bipartisan position in Australia of support for two states."

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