Mr Morrison said Australia remained committed to a two-state solution in the Middle East, but added: “When sensible suggestions are put forward that are consistent with your policy positioning and in this case pursuing a two-state solution, Australia should be open-minded to this and I am open-minded to this and our government is open-minded to this.”
But critics said his remarks were positioned to influence Saturday’s by-election in Wentworth, Sydney, a seat with a large Jewish population.
The governing Liberal party has a single-seat majority in the House of Representatives.
Mr Netanyahu tweeted that the Australian Prime Minister “informed me that he is considering officially recognising Jerusalem as the capital of Israel & moving the Australian embassy to Jerusalem. I’m very thankful to him for this.”
He added that Israel will “continue to strengthen ties” with Australia.
The announcement was criticised by other countries in the Asia-Pacific region.
The ABC, Australia’s state broadcaster, reported Indonesian officials as saying they had been taken by surprise by the announcement and that it could harm bilateral trade negotiations.
