Israel's foreign minister said on Monday he had revoked the visas of Australian diplomats to the Palestinian Authority, following a decision by Canberra to recognise a Palestinian state and cancel an Israeli lawmaker's visa.

Israel on Monday cancelled the visas of Australian diplomats who maintain ties with the Palestinian Authority, in an escalating spat between the allies after Canberra said it would recognise a Palestinian state.

Israel's Foreign Minister has revoked the visas of Australian representatives to the Palestinian Authority in response to the Albanese government's decision to recognise Palestinian statehood.