Australia has reversed a controversial decision to recognise West Jerusalem as Israel’s capital, with the foreign minister labelling the coalition government change a political ploy.

Foreign Minister Penny Wong said the conflict between Israel and Palestine should be resolved through peace negotiations between the two.

Both Israel and Palestine claim Jerusalem as their capital.

Tuesday’s announcement sparked immediate anger from Israel.

“In light of the way in which this decision was made, as a hasty response to an incorrect report in the media, we can only hope that the Australian government manages other matters more seriously and professionally,” tweeted Keren Hajioff, the international spokeswoman to Israel’s Prime Minister Yair Lapid.

“Jerusalem is the eternal and united capital of Israel and nothing will ever change that.”

The ABC was reporting on Tuesday afternoon that Israel’s Foreign Ministry said it would summon the Australian ambassador over the decision.

Tweet from @kerenhajioff

Senator Wong’s announcement followed a 2018 decision by former prime minister Scott Morrison to recognise West Jerusalem as Israel’s capital, and declare that Australia would move its embassy there from Tel Aviv.

Senator Wong described that decision as purely political.

“I think we all know, when we saw some of it publicly, that the 2018 decision put Australia out of step with the majority of the international community,” she said.

“It was received with great concern by members of the international community.

“You know what this was? This was a cynical, unsuccessful, play to win the seat of Wentworth and a byelection.”

Mr Morrison made the surprise decision to follow a similar move by then US president Donald Trump in relocating Australia’s embassy to Jerusalem in the days before the 2018 byelection in the Sydney seat of Wentworth.

Wentworth has a high proportion of Jewish residents.

Mr Morrison’s move was seen as effectively recognising the historically disputed Middle Eastern city as Israel’s capital – Australia was just the second major nation to do so after the US.

It apparently followed talks with Dave Sharma, a former ambassador to Israel who was then the Liberal Party’s candidate in Wentworth. Mr Sharma lost the subsequent byelection to independent Kerryn Phelps.

On Tuesday, a spokeswoman for Mr Morrison said the backtrack was disappointing.

“[It] represents a further diminution in Australia’s support for the state of Israel by the Labor government from the high-water mark established by the Morrison government,” she said.

Opposition Leader Peter Dutton left the door open for the Coalition to abandon Mr Morrison’s policy, saying: “We’ll make an announcement about our policy in the run-up to the next election.”

He said the announcement was an attempted distraction to draw attention from Labor’s upcoming budget and its lack of a plan to deal with the rising cost of living.

Opposition immigration spokesman Dan Tehan said the handling of the situation was unfortunate. Mr Tehan said he stood by the Morrison government’s decision but did not comment on whether it remained Coalition policy.

Senator Wong said Australia’s embassy “has always been, and remains, in Tel Aviv”.

She reaffirmed Australia’s support for the Israeli community and the Palestinian people.

“I regret that Mr Morrison’s decision to play politics resulted in Australia’s shifting position and the distress these shifts have caused,” she said, expressing Canberra’s commitment to a two-state solution.

The decision was made by cabinet on Tuesday morning but the Department of Foreign Affairs moved ahead of the decision to update the Israel page on its website.

Senator Wong said while website update got ahead of government processes, she would not put the blame on anyone.

“That happens – that’s why I am here today making sure we are clear about our position,” she said.

-with AAP