Sydney, Dec 15 (AFP) Australia now recognises west Jerusalem as Israel's capital, Prime Minister Scott Morrison said Saturday, but a contentious embassy shift from Tel Aviv will not occur until a peace settlement is achieved.

Morrison also committed to recognising the aspirations for a future state of Palestine with east Jerusalem as its capital when the city's status is determined in a peace deal.

The prime minister said it was in Australia's interests to support "liberal democracy" in the Middle East and took aim at the United Nations he said was a place Israel is "bullied". (AFP) AMS

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)