Mr Dreyfus will meet Israeli officials during the trip, as well as visit the Occupied Palestinian Territories.
The visit by the senior cabinet minister, who is Jewish, was originally slated to be made in October to coincide with the anniversary of the October 7 attacks, but was postponed due to violence in the region caused by Hezbollah.
Mr Dreyfus said he would call for the release of Israeli hostages by Hamas, as well as reiterate support for a ceasefire as endorsed by the UN's Security Council.
Attorney-General Mark Dreyfus will call for a peace deal and the release of Israeli hostages. (Mick Tsikas/AAP PHOTOS)
"I will restate Australia's long-standing position that peace in the Middle East can only be achieved through a two-state solution - with Israelis and Palestinians living securely and prosperously within internationally recognised borders," he said.
"In my meetings with Israeli officials I will convey Australia's support for Israel's security and its right to defend itself in the face of terrorism.
"I will also visit the Occupied Palestinian Territories and make clear Australia's support for Palestinians' right to self-determination and commitment to meeting humanitarian needs in Gaza and the West Bank."
The visit comes as mediators say they have made significant progress in moving towards a ceasefire and a deal to release hostages, but a formal agreement is yet to be reached.
US officials have been working for months to bring about a ceasefire deal, following more than a year of fighting in the current conflict.
Israel's war in Gaza was sparked by a Hamas attack on October 7, 2023 that killed 1200 people and resulted in 250 hostages being taken, according to Israeli authorities.
In response, Israel has since waged a brutal occupation of the Gaza Strip which has killed more than 46,000 people, according to the local health ministry.
Vigils have been held around the world for those killed in the Middle East conflict. (Steven Saphore/AAP PHOTOS)
While Australia had come under fire from Israeli officials for supporting a series of UN resolutions urging for a ceasefire, Prime Minister Anthony Albanese said the visit to Israel by Mr Dreyfus was standard procedure.
"People regularly visit friendly nations, there is nothing surprising about that," he told reporters on the NSW South Coast on Tuesday.
"The Attorney-General was due to go in October, due to what was happening on the ground there with attacks from the terrorist organisation Hezbollah, that visit didn't go ahead then and it was deferred until January."
Opposition Leader Peter Dutton reiterated the coalition's support for Israel, indicating he would use his prime ministership to strengthen ties with the Middle East nation.
"We should remind ourselves that that is an important relationship. We should seek to nurture and grow it," he told reporters in Ipswich.
"One of my first calls after the election will be to the prime minister of Israel, and it will be a priority for our government to mend that relationship quickly, because it's in our national interest to do so."
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