The Australian embassy in Tel Aviv isn't going anywhere, even as President Donald Trump plans to recognise Jerusalem as the capital of Israel and set in motion the relocation of the US embassy to the city.
Foreign Minister Julie Bishop says any decision about the relocation of US embassies is a matter for Washington.
Ms Bishop has previously left the door open to relocating Australia's embassy from Tel Aviv, should its major allies do likewise.
"The Australian government will continue our diplomatic representation to Israel from our embassy in Tel Aviv and our representation to the Palestinian Authority from our office in Ramallah," she said in a statement.
"Matters relating to Jerusalem are subject to final status negotiations between Israel and the Palestinian Authority."
Australia supports a two-state solution for Israel and Palestine.
Labor foreign affairs spokeswoman Penny Wong supports continuing Australia's diplomatic representation to Israel from Tel Aviv and representation to the Palestinian Authority from Ramallah.
"Labor believes the proposed change to US policy on this matter is unhelpful toward progressing peace in the Middle East and a two-state solution," she said.
Greens leader Richard Di Natale condemned Australia's reaction to the US decision, especially in light of other global criticism.
"What an utterly disgraceful lack of leadership," he said.