Australian Prime Minister Scott Morrison is facing mounting criticism at home over his plan to recognise West Jerusalem as the capital of Israel. The plan, which follows a similar move by the United States, has gain praise from Israel, and condemnation from Palestine. CGTN's Greg Navarro has more.

The announcement in Sydney ended months of speculation over whether Australian Prime Minister Scott Morrison would follow through on an apparent change in position regarding Israel.

SCOTT MORRISON AUSTRALIAN PRIME MINISTER "Australia now recognises West Jerusalem, being the seat of the Knesset (Israeli Parliament) and many of the institutions of the government, is the capital of Israel. West Jerusalem is the capital of Israel."

Australia follows the United States, which also recognises Jerusalem as the capital. But unlike the US, Morrison said that Australia wouldn't move its embassy to West Jerusalem until after a settlement has been reached between Israel and Palestine.

GREG NAVARRO SYDNEY "The idea was first floated here in Sydney about 2 months ago, just days before an important election for the government, in an electorate with a high percentage of Jewish voters."

BILL SHORTEN AUSTRALIAN OPPOSITION LEADER "I'm not sure when he rushed the announcement of moving the embassy that he really knew what he was doing. I'm tempted to think it was a sort of a rookie mistake for a prime minister. But it's a little more serious than that. My fear is that Mr. Morrison hasn't just had to do a political backdown. My fear is that he's made Australia look stupid on the international stage."

Australia's announcement was welcomed by Israel, but criticised by Palestinian officials.

HANAN ASHRAWI SENIOR PALESTINIAN OFFICIAL "Well this decision, regardless of the fact that it talks about west Jerusalem, is an irresponsible decision that constitutes a negative interference in the dynamic of the region and the requirements of peace and justice. Clearly, he (Australian Prime Minister Scott Morrison) has taken such a position for narrow self-interest for domestic political considerations rather than for the standing and principled position of Australia and the Australian people as a whole."

Morrison cited deepening defence and economic ties with Israel as factors in his decision.

SCOTT MORRISON AUSTRALIAN PRIME MINISTER "Australia-Israel trade now running at over 1.3 billion (Australian) dollars per year, this will help continue to build strong bilateral trade relationship."

But the move could come at a greater cost for Australia. It's more than $16 billion AUD trade deal with Indonesia, a Muslim-majority nation, was put on hold when Morrison first announced his intention. Australia's new position acknowledges Palestine's aspirations, but does not recognise a Palestinian state, or East Jerusalem as its capital. Greg Navarro, CGTN, Sydney.