The Morrison government will formally recognise Jerusalem as Israel's capital after a cabinet meeting but it won't be announced until the COAG meeting on Wednesday.
The Australian reports that the decision will be ratified by the cabinet at a meeting on Tuesday after the national security committee approved it on Monday night.
However, the embassy won't be moved from Tel Aviv just yet. Instead a consular office will be opened, the sources said, due to the cost of the move, pegged at $200 million.
The potential move comes despite a warning from Australia’s close Muslim-dominated neighbour, Indonesia.
In October, former Prime Minister Malcolm Turnbull met with Indonesian President Joko Widodo in Bali as part of an Australian delegation attending a global conference. At the time, the Indonesian president warned of “serious concerns” about any move to Jerusalem.
