SYDNEY: Australia formally recognises 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.

“Australia now recognises West Jerusalem, being the seat of the Knesset and many of the institutions of government, is the capital of Israel,” Morrison said. “We look forward to moving our embassy to West Jerusalem when practical,” he told reporters in Sydney.

Morrison also confirmed Australia’s support for a two-state solution with a Palestinian capital in East Jerusalem.

In October, Morrison said he was open to shifting Australia’s embassy from Tel Aviv.

President Donald Trump’s move of the US embassy to Jerusalem from Tel Aviv in May delighted Israel, infuriated Palestinians and upset the wider Arab world and Western allies.

Morrison’s unexpected announcement in October was viewed cynically at the time because it came days before a crucial by-election in an electorate with a strong Jewish representation, a poll his party subsequently lost.

It also drew criticism from Muslim-majority neighbours such as Indonesia and Malaysia, neither of whom formally recognise Israel’s right to exist. Arab countries worried that the move would unnecessarily inflame tensions in the Middle East.

The Palestinian chief negotiator Saeb Erekat said that the Australian announcement was born of “petty domestic politics”.

“The policies of this Australian administration have done nothing to advance the two-state solution,” Erekat said in a statement. “All of Jerusalem remains a final status issue for negotiations, while East Jerusalem, under international law, is an integral part of the occupied Palestinian territory.”

Morrison said Australia would not move its embassy to West Jerusalem until the city’s final status was determined, but said trade and defence offices would be opened there.

Published in Dawn, December 16th, 2018