Australian Prime Minister Anthony Albanese said on Monday that his government's move to recognize Palestinian statehood represents a step forward for a peaceful resolution in the Middle East.

Albanese and Penny Wong, Australian minister for foreign affairs, announced from New York on Sunday that Australia has formally recognized the independent and sovereign state of Palestine.

The announcement came over a month after Albanese announced in August that his government would move to recognize Palestinian statehood at the 80th session of the United Nations General Assembly.

Speaking on Monday, Albanese told Australian Broadcasting Corporation (ABC) television that a two-state solution has been a bipartisan position in Australia since the state of Israel was declared in 1948.

"The recognition of Palestine is a step forward towards a more peaceful resolution towards what our vision is, which is Israelis and Palestinians living side by side in peace and security and advancing the prosperity of both peoples," he said.