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

Foreign Minister Penny Wong said the city's status should be decided through peace talks between Israelis and Palestinians, 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 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.

"I know this has caused conflict and distress in part of the Australian community, and today the government seeks to resolve that," Wong said.