Australia is considering following the US’s lead by moving its embassy in Israel from Tel Aviv to Jerusalem.

Prime Minister Scott Morrison said the idea was suggested to him by a former Australian ambassador to Israel, Dave Sharma — but was accused of seeking to influence a by-election this weekend, where Mr Sharma is a candidate for the governing party.

Israel’s Prime Minister Benjamin Netanyahu said he was “very thankful” to his Australian counterpart.

The potential move would be the most significant embassy relocation since last December, when US President Donald Trump reversed his country’s long-held position by recognising Jerusalem as Israel’s capital.

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.