Anthony Albanese is warning Benjamin Netanyahu any move to expand Israeli settlements in the West Bank or annex parts of Palestine risks putting a two-state solution permanently “beyond reach”.

As far-right members of Netanyahu’s governing coalition demand Israel annexe some of the territory that would be part of a future Palestinian state, Albanese will tell a major conference in New York the current trajectory of the conflict is deeply worrying to the international community.

The address came as the opposition leader, Sussan Ley, moved to assure Donald Trump’s allies that Australia’s alternative government “strongly opposes” the decision to recognise Palestinian statehood, after Republican lawmakers warned Albanese of potential “punitive measures” in response to the foreign policy shift.

The Israeli prime minister lashed out at Albanese and the leaders of France, Canada and the UK on Monday, as they formally recognised Palestine, in a bid to end the bloody war in Gaza.

Netanyahu has promised a major response when he returns home from the US, where Albanese will meet with the French president, Emmanuel Macron, at a conference on the two-state solution.

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Albanese will say Israel should urgently allow humanitarian supplies to flow and stop the killing of innocent civilians – including children, aid workers and journalists.

He will tell the conference, hosted by France and Saudi Arabia, that “continued illegal expansion of settlements on the West Bank” and associated settler violence must stop. The prime minister will warn threats to annex parts of Palestine and permanently displace Palestinians could end any chance at peace.

“Such conduct risks putting a two state solution beyond reach,” Albanese will say.

Albanese and the foreign minister, Penny Wong, have stressed Australia is not a central player in Middle East politics but can use its status as a smaller power to voice support for a ceasefire and an end to the conflict.

Albanese has cultivated close ties to leaders including Macron, Britain’s Keir Starmer and Mark Carney of Canada.

The leaders are adjusting to a shifting international order, in part due to Trump’s America First approach to foreign policy.

Members of Netanyahu’s far-right government have been pushing to annex the occupied West Bank for years. The ultranationalist finance minister, Bezalel Smotrich, has discussed plans to annex more than 80% of the West Bank. Australia has sanctioned Smotrich and the national security minister, Itamar Ben-Gvir, alleging they have incited violence against Palestinians in the West Bank.

Responding to Albanese’s announcement of immediate recognition, Netanyahu warned a Palestinian state was “not going to happen” and told world leaders to “stand by”.

“There will be no Palestinian state to the west of the Jordan River,” Netanyahu said.

Netanyahu has the backing of the US president, Donald Trump, for his hardline management of the war, sparked by the 7 October attacks, despite being isolated from many other international leaders.

Albanese will use his speech to urge the international community to cooperate.

“Working together, we can build a future where instead of children in Gaza dying in pain, living in fear, or being taught to hate, they can go to school, build a ‘life in larger freedom’, aspire to raise children of their own.”

Before the formal announcement on Palestinian recognition, a group of 25 Republican lawmakers – including Texas senator and Trump loyalist Ted Cruz – wrote to Albanese and his UK, French and Canadian counterparts urging a rethink of the decision.

Describing recognition as a “reckless policy that undermines prospects for peace”, the lawmakers warned the move would put the countries at odds with a longstanding US position and “may invite punitive measures in response”.

Ley replied to the lawmakers on Monday (Australian time) to assure them the decision does not have bipartisan support in Australia, and would be reversed if the Coalition won the next election.

She said Australia’s national interest would be served through a US-backed process, which she said could only be achieved after Hamas was removed from Gaza and all of the hostages captured in the 7 October attacks were released.

Ley said the Albanese government pushed ahead with recognition despite these “crucial conditions” not being met.

The government said recognition in concert with other countries was designed to “build momentum” for a two-state solution, starting with a ceasefire in Gaza and the release of the hostages. It has made clear Hamas has no role in a future Palestinian state.

“In this time of global uncertainty I want to affirm that millions of Australians remain committed to our enduring friendship with the United States and our Alliance,” Ley’s letter said.

“We cannot allow our relationship to drift, which we have unfortunately seen under our current Prime Minister, including on the matter you have raised.”

Ley confirmed in the letter plans to travel to the US later this year, her first overseas trip as opposition leader.

So far no meeting with Trump has been scheduled on the sidelines of the UN general assembly, despite significant effort from the Australian side. Albanese has leaders meetings scheduled across the week and likely come face to face with Trump at a cocktail party for world leaders, hosted by the US on Wednesday.

The Simon Wiesenthal Center, based in Los Angeles, hit out at Australia’s recognition of Palestine’s statehood on Monday. Named for the legendary Holocaust survivor and Nazi hunter, the organisation is a global Jewish human rights organisation.

Rabbi Abraham Cooper, the US centre’s director of global social action, said if governments truly cared about humanitarian crises, “they would demand the immediate release of every last hostage before Hamas kills them all.”

In the past, both sides of Australian politics supported Australia a two-state solution as the only pathway to a secure and peaceful resolution between Israelis and Palestinians.

ECAJ president Daniel Aghion said recognition would not bring peace.

“Far from creating momentum towards a two-state peace, recognition of a Palestinian state in these circumstances will set the process back. Recognition must come at the end of a peace process not during the conflict.”

Separately Albanese could meet the Turkish president, Recep Tayyip Erdoğan, in New York to discuss Australia’s bid to host the Cop31 climate summit. Turkey is bidding for hosting rights, and if neither country withdraws, the event will default to Bonn, Germany, despite strong support for Australia.

The climate change and energy minister, Chris Bowen, met with his counterpart in New York to try to reach a breakthrough.

Wong oversaw an event to mark new codified protection for aid workers in conflict zones. She appeared alongside the brother of Australian aid worker, Zomi Frankcom.

The 43-year-old Melbourne woman was killed in early 2024, when in an Israeli airstrike in Gaza while she was working with aid organisation World Central Kitchen.