Senator Wong advanced the prospect in a speech on Tuesday, signalling a hardening of Australia’s stance on the conflict in the region where Israel’s war against Hamas militants in Gaza has left up to a million people facing starvation.

In a speech at the Australian National University, the minister said a secure and prosperous future for both Israel and Palestinians could only come with a two-state solution.

“Recognising a Palestinian state – one that can only exist side by side with a secure Israel – doesn’t just offer the Palestinian people an opportunity to realise their aspirations,” she told a National Security College conference on Tuesday.

“It also strengthens the forces for peace and undermines extremism.

“It undermines Hamas, Iran and Iran’s other destructive proxies in the region.

“This is why we are urging all parties to return to the table, and why we are engaging to support all efforts to advance a political process, including discussions between regional leaders.”

Her comments come after Prime Minister Anthony Albanese indicated federal Labor’s support for a two-state solution.

She also referred to UK Foreign Secretary David Cameron saying Britain would consider recognising a Palestinian state, although not while Hamas remained entrenched in Gaza.

Senator Wong said there was “widespread frustration” at the lack of progress towards a two-state solution – a Palestinian state in the occupied West Bank and in Gaza alongside Israel – since the Oslo Accords were signed in the early 1990s.

“So the international community is now considering the question of Palestinian statehood as a way of building momentum towards a two-state solution,” she added.

Home Affairs Minister Clare O’Neil said Australia wanted to see an end to the violent conflict, which has been going on for far too long.

“The concept of Palestinian statehood is something that’s been widely talked about in discussion amongst national security professionals all over the world,” she told Seven’s Sunrise program on Wednesday.

“The foreign minister is trying to see our country play a constructive role in that.”

Opposition spokeswoman Jane Hume said Senator Wong’s remarks were a “significant shift” away from Australia’s bipartisan position on Israel and the Palestinian territories.

“This is putting statehood ahead of security and it will be seen as a win for the terrorists,” she told Seven.

“Quite frankly, we cannot have a two-state solution that doesn’t guarantee the confidence and security of both states to exist and at the moment that simply doesn’t exist.

“Hamas is still harbouring terrorists … It’s still hiding hostages in amongst civilian infrastructure and civilians themselves.”

On Tuesday, Senator Wong ruled out Hamas having any role in leading a Palestinian state, saying that job should go to a reformed Palestinian Authority.

“There is no role for Hamas in a future Palestinian state,” Senator Wong said.

“Hamas is a terrorist organisation which has the explicit intent of the destruction of the state of Israel and the Jewish people.”

The conflict in Gaza was triggered by Hamas’ cross-border attack in southern Israel on October 7, that left 1200 people dead and more than 250 people taken hostage, , according to Israeli tallies.,.

More than 33,000 Palestinians have been killed in six months of conflict, Gaza’s health ministry says.

Most of the enclave’s 2.3 million people are homeless and many are at risk of famine.