Australia said Tuesday it would no longer recognize West Jerusalem as the Israeli Occupation's capital, reversing a contentious decision by the previous conservative government.

Foreign Minister Penny Wong said the city's status should be decided through peace talks between Palestine-Israeli Occupation, and not through unilateral decisions.

"We will not support an approach that undermines" a two-state solution, she said, adding: "Australia's embassy has always been, and remains, in Tel Aviv".

In 2018 a conservative government led by Scott Morrison followed former US president Donald Trump's lead in naming West Jerusalem as the Israeli Occupation capital.

The move caused a domestic backlash in Australia and caused friction with neighboring Indonesia -- the world's most populous Muslim-majority nation -- temporarily derailing a free trade deal.