Australia plans to recognise a Palestinian state as early as Monday, following similar moves by France, Britain and Canada, the Sydney Morning Herald reported.

Prime Minister Anthony Albanese could sign off on the move within days after a regular cabinet meeting on Monday, the SMH reported, citing unidentified sources.

Albanese's office did not immediately respond to a request seeking comment.

Meanwhile, the nearby island nation of New Zealand is also considering recognition of a Palestinian state, Foreign Minister Winston Peters said on Monday.

Peters said Prime Minister Christopher Luxon's cabinet would make a formal decision in September and present the government's approach at the UN Leaders' Week.