The Greens are poised to move a motion in the Senate on Tuesday expressing "the need for the Senate to recognise the State of Palestine" as an urgent matter.
The motion would wedge Labor backbencher Fatima Payman, who broke ranks with the government's line, saying it was "imperative" to recognise statehood as she accused Israel of genocide in Gaza as the death toll mounts.
There is speculation she will cross the floor to support the Greens' motion, but such a move would see her kicked out of the Labor Party under internal rules.
Senator Payman hasn't commented publicly.
There's speculation Labor backbencher Fatima Payman will cross the floor to vote with the Greens. (Mick Tsikas/AAP PHOTOS)
Greens senator Mehreen Faruqi says any vote against, or abstention from the motion "will be recorded on the wrong side of history" with some 150 other nations already recognising Palestine.
"At the heart of the recognition of Palestinian statehood is the right of Palestinian people to self-determination and to freedom," she said.
Israel and Palestine had the right "to live in peace, security and equality", the party's foreign affairs spokesman Jordon Steele-John said.
"We recognise that the State of Israel over decades have taken actions and implemented policies which are rendering the achievement of a two state solution," he said, pointing to illegal settlements in occupied Palestinian territories.
Mehreen Faruqi says a vote against the motion "will be recorded on the wrong side of history". (Mick Tsikas/AAP PHOTOS)
Labor has affirmed it will recognise a Palestinian state but with no timeline attached.
Senator Wong said it would form part of a peace process for a two state solution and could no longer be pushed back until a negotiated peace settlement was agreed.
The foreign minister has written to the opposition and Senate crossbench urging them to support a government amendment to the motion, which would add the recognition should come "as a part of a peace process in support of a two state solution and a just and enduring peace".
Independent senator David Pocock will support the amendment and has called for the government to take a stronger line against Israel's action in Gaza.
Penny Wong is urging the opposition and crossbench to support a government amendment to the motion. (Lukas Coch/AAP PHOTOS)
Australia has called for Israel to follow international humanitarian law and said it was "gravely concerned" about a United Nations inquiry that found both Israel and Hamas were responsible for war crimes.
Two parallel reports found Hamas had wilfully killed Israelis, taken hostages and engaged in inhuman and cruel treatment against international law.
The "immense" scale of killing in Gaza, use of starvation and failure to supply essentials such as food, water, shelter and medicine were found to be war crimes conducted by Israel.
Tel Aviv has rejected the findings and accused the inquiry of having an anti-Israeli bias.
Designated terrorist organisation Hamas killed 1200 Israelis and took some 250 hostage during an attack on October 7, according to Tel Aviv.
Israel's counter-offensive in Gaza has since killed more than 37,000 people, the Hamas-run local health ministry says.