Australia reaffirms Israel decision despite backlash

Australia's conservative prime minister on Sunday stood by his decision to recognise west Jerusalem as the capital of Israel, despite criticism from neighbouring Muslim countries.

Canberra became one of a handful of governments to follow US President Donald Trump's lead and recognise the contested city as Israel's capital, Prime Minister Scott Morrison had announced Saturday.

But a contentious embassy shift from Tel Aviv -- a proposal made during a crucial Sydney by-election that critics said was timed to attract Jewish voters -- will not occur until a peace settlement is achieved.

Australia's Muslim-majority neighbour Malaysia said Sunday it "strongly opposes" the decision to recognise west Jerusalem.

The announcement was "premature and a humiliation to the Palestinians and their struggle for the right to self-determination," the government said in a statement advocating a two-state solution to the Israeli-Palestinian conflict.

Australia's immediate neighbour Indonesia, the world's most populous Muslim nation, was angered by the embassy move proposal in the run-up to the by-election, and said Saturday it "notes" the decision.

Citing Jakarta's response, Morrison said Sunday that the international reaction had been "measured" and that his decision would progress a two-state solution.

"I think the responses that we have seen from countries so far has been measured," Morrison told reporters in Canberra.

"Australia would continue to respect a two-state outcome that remained our goal as strongly as ever."