Australia's prime minister has accused his Israeli counterpart Benjamin Netanyahu of being "in denial" over the consequences of the war in Gaza, BBC reported.

Anthony Albanese on Monday announced his country would recognise a Palestinian state at the UN General Assembly in September, following similar moves by the UK, France and Canada.

Albanese said frustration with the Israeli government had played a role in the move, saying Australians "want to see the killing and the cycle of violence stop".

Israel, under increasing pressure to end the war in Gaza, has said recognising a Palestinian state "rewards terrorism" and Netanyahu called the decision taken by Australia and other allies "shameful,” according to BBC.