"Until Israeli and Palestinian statehood is permanent, peace can only be temporary," he told reporters. 

"Australia will recognize the right of the Palestinian people to a state of their own."

Several countries, including France, Britian and Canada, have announced plans to recognize statehood for Palestinians since Israel launched a bombardment of Gaza nearly two years ago in response to the Hamas attacks.

Albanese added that he had received assurances from the Palestinian Authority that there would be "no role for the terrorists of Hamas in any future Palestinian state".

"There is a moment of opportunity here, and Australia will work with the international community to seize it," he said.

Israel has condemned decisions by countries to support a Palestinian state, saying it will reward Hamas, the militant group that governs Gaza. 

Netanyahu told reporters on Sunday that most Israeli citizens were against establishing a Palestinian state as they thought that would bring war and not peace, even as thousands of protesters flooded the streets of Tel Aviv, opposing his plan to escalate the nearly two-year war and seize Gaza City.

"To have European countries and Australia march into that rabbit hole just like that, fall right into it ... this is disappointing and I think it's actually shameful but it's not going to change our position," Netanyahu said.

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Israel's ambassador to Australia, Amir Maimon, said the decision was symbolic, rather than "genuine progress towards peace". 

"Let us be clear: this decision will not change the reality on the ground," Maimon said in a statement on social media.

"Australia elevates the position of Hamas, a group it acknowledges as a terrorist organization, while weakening the cause of those working to end violence and achieve genuine, lasting peace." 

International concern is growing about the plight of the more than two million Palestinians in the Gaza Strip, where the fighting has triggered a dire humanitarian crisis and warnings of mass starvation.

Albanese further criticized the Israeli government on Monday, saying it continued to defy "international law and deny sufficient aid". 

As the global movement to recognize a Palestinian state grows, New Zealand's Foreign Minister Winston Peters said his country would carefully consider whether to do the same over the next month.

He added that New Zealand's recognition of a Palestinian state was a "matter of when, not if".

"The humanitarian catastrophe in Gaza is rightly at the forefront of the global agenda," he said. 

Israel's offensive has killed at least 61,430 Palestinians, according to Gaza's health ministry, figures the United Nations says are reliable.

Hamas's 2023 attack on Israel, which triggered the war, resulted in the deaths of 1,219 people, according to an AFP tally based on official figures.