By officially recognizing the State of Palestine, Australia remains committed to two-state solution to the Middle East crisis, according to officials.

In an announcement, Australia on Sept 21 officially recognized the State of Palestine, laying out priorities including a ceasefire for the Israeli-Palestinian conflict in Gaza.

The move recognized "the legitimate and long held aspirations of the people of Palestine to a state of their own", according to a joint statement by Australia's Prime Minister Anthony Albanese and Foreign Minister Penny Wong.

"Today's act of recognition reflects Australia's longstanding commitment to a two-state solution, which has always been the only path to enduring peace and security for the Israeli and the Palestinian peoples," the statement said, citing a co-ordinated international effort that included a ceasefire for the conflict in Gaza.

Further steps, including the establishment of diplomatic relations and opening of embassies, will be considered, they added.

"Already, crucial work is underway across the international community to develop a credible peace plan that enables the reconstruction of Gaza, builds the capacity of the state of Palestine and guarantees the security of Israel," according to their statement.

"Australia will continue to work with our international partners to help build on today's act of recognition and to bring the Middle East closer to the lasting peace and security that is the hope, and the right, of all humanity," they said.

Australia's recognition of Palestinian statehood joined similar moves by Canada, Britain and Portugal, amid the visit of Albanese to the United States for a United Nations General Assembly meeting.

More than 140 UN member states which have recognized Palestine as part of efforts toward a two-state solution amid the Gaza conflict.