Recognition of a Palestinian state could pave the way for a two-state solution, Australia and Britain say.
In a joint statement following the annual Australia-United Kingdom Ministerial Consultations on Friday, both nations reaffirmed their commitment to a two-state solution where both Israel and a future Palestinian state co-exist.
They discussed how "recognition might assist in giving momentum toward that goal".
But no further detail or timing for the move was provided in the statement.
The ministers, who held the meeting in Adelaide, expressed the urgency for an immediate cessation of fighting in Gaza to allow aid to flow and hostages to be released as a crucial step toward a permanent, sustainable ceasefire.
They said they shared "deep concern at the potentially devastating consequences for the civilian population of an expanded Israeli military operation in Rafah".
Both countries said they "unequivocally condemned the 7 October 2023 Hamas attacks on Israel as abhorrent acts of terror against innocent civilians, including heinous acts of sexual violence".
More than 31,000 Palestinians have been killed since Israel retaliated against Hamas in Gaza, with a further 1.7 million people displaced, according to the local health ministry and the United Nations.
Hamas killed 1200 Israelis and took more than 200 people hostage in the October 7 attack.
