Australia's embassy in Tel Aviv staying put: Turnbull

Prime Minister Malcolm Turnbull says time will tell what impact the decision to move the American embassy in Israel to Jerusalem will have on the peace process.

Prime Minister Malcolm Turnbull says the coalition has removed some "difficult" barnacles in 2017. (AAP) Source: AAP

Malcolm Turnbull believes time will tell what impact Donald Trump's decision to relocate America's Israeli embassy to Jerusalem will have.

The prime minister noted former US presidents had not made the decision because they were concerned about the Middle East peace process.

"We are not going to relocate our embassy. It will remain in Tel Aviv," he told ABC radio on Friday.