Israeli Foreign Minister Avigdor Lieberman told Haaretz the move was a "very unfortunate decision".
"The Swedish government needs to understand that relations in the Middle East are more complicated than a piece of furniture from IKEA that you assemble at home, and should act with responsibility and sensitivity," he added.
The newly elected Swedish Prime Minster, Stefan Lofven, announced the plans to implement the decision at his swearing-in ceremony early this month.
Seven other EU countries officially recognised the state of Palestine prior to becoming member states of the EU: Bulgaria, Cyprus, the Czech Republic, Hungary, Malta, Poland and Romania.
