Cabinet expects to make a final decision later this week, on whether New Zealand will formally recognise a Palestinian state.

Australia, the UK and Canada have all formally announced their recognition of Palestine.

Israeli Prime Minister Benjamin Netanyahu has condemned their moves, saying a Palestinian state would be a "huge reward to terrorism" and "will not happen".

Chris Luxon told Mike Hosking that New Zealand will make its own decision.

He says irrespective of the decision New Zealand makes on state recognition, the bigger issue is how to make the region calm and peaceful again.

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