Australia has welcomed Donald Trump's "Vision for Peace" as a first step towards a two-state solution to resolve the Israel-Palestine conflict.
The US president announced his plan at a White House event with Israeli Prime Minister Benjamin Netanyahu standing at his side.
Mr Trump said he had told Palestinian leaders the territory allocated for a new state will "remain open and undeveloped for a period of four years".
"During this time, Palestinians can use all appropriate deliberation to study the deal, negotiate with Israel, achieve the criteria for statehood and become a truly independent and wonderful state," he said.
Foreign Minister Marise Payne said any peace arrangement needed to be negotiated directly between Israel and the Palestinians.
"We recognise that the US must play a role in any credible peace process," she said.
"Australia supports mechanisms that address the legitimate concerns of both Israel and the Palestinians, and we strongly encourage Palestinian representatives and Israel to enter into good faith discussions on a peace process.
"Australia calls on all parties to exercise maximum restraint and to refrain from violence or other provocative actions or statements that undermine the prospects for peace."
Australian Associated Press
