Canada, the UK and France have announced plans to recognise the state of Palestine at a United Nations meeting in September, amid a humanitarian crisis in Gaza.
Although the federal government has said statehood is a matter of "when, not if", it has been hesitant to set a timeline, with the prime minister previously saying any UN resolution would need to guarantee the designated terror group Hamas played no role in the future nation.
Now, Foreign Minister Penny Wong has revealed Australia is working with other countries on recognition to ensure its concerns are met.
"We understand the urgency, we also understand the importance of having impact, we are obviously discussing and co-ordinating these issues with many countries," she told Nine's Today show on Tuesday.
"Everybody understands that there is a risk that there will be no Palestine left to recognise unless the international community work together towards two states.
"We want to ensure work with others to ensure that Hamas has no role in a future Palestinian state, and we do have a unique opportunity at this time with the international community to isolate Hamas."
Prime Minister Anthony Albanese spoke with Palestinian Authority President Mahmoud Abbas on Tuesday morning, when he reiterated Australia's commitment to a two-state solution in the Middle East that would allow Palestine and Israel to co-exist.
He also stressed the need for the immediate delivery of aid to Gaza, a permanent ceasefire and the release of all hostages.
Mr Abbas thanked Australia for its economic and humanitarian support for Gaza and agreed to meet on the sidelines of the UN General Assembly meeting starting on September 9.
More than 140 of the 193 UN member states already recognise the state of Palestine, including European Union member states Spain and Ireland.
The Australian development comes after significant pro-Palestine protests in capital cities over the weekend, including a 90,000-strong march on the Sydney Harbour Bridge on Sunday.
Australia on Monday also committed another $20 million to humanitarian aid for Gaza, as UN sources found more than two million people in the enclave were facing high levels of food insecurity.
Mr Albanese has also requested a call with his Israeli counterpart, Benjamin Netanyahu.
The crisis in Gaza began after Hamas attacked Israel on October 7, 2023, killing 1200 people and taking about 250 more hostage.
Israel's retaliatory response has since killed more than 60,000 people, according to Gaza's health authorities.
Israel has denied the population is facing, or succumbing to, starvation despite international human rights groups branding its offensive a genocide.
Overnight, Gaza's health ministry said the number of people who have died from hunger since the war began has risen to 180, including 93 children.
The Australian government has taken issue with the Israeli position.
"We believe it is a breach of international law to stop food being delivered, which is the decision Israel made in March," Senator Wong told ABC Radio.
Pro-Palestine Australians have called on the government to impose sanctions on Israel similar to those placed on Myanmar and Russia.
Senator Wong noted that Australia had sanctioned individuals for human rights abuses against Palestinians.
The government would not speculate on sanctions "for the obvious reason they have more effect if they are not flagged".
The coalition has reiterated its support for a two-state solution, but Liberal MP Julian Leeser said recognition can only come "at the end of a process".
"It's wrong that we're putting recognition on the table at this point because it removes pressure on Hamas, and I think it sends a bad signal to other areas of conflict," he told ABC Radio.
"It's very important that we do nothing that encourages Hamas in its activities."
