Australia has been made to "look stupid" by the federal government floating the idea of moving the nation's Israeli embassy, according to Labor leader Bill Shorten.
After meeting with the president of Indonesia - which has been furious Australia is considering the shift - Prime Minister Scott Morrison on Wednesday said a review of the embassy site would be done by Christmas.
Mr Shorten says the prime minister made a mistake in contemplating the move, which would break away from decades of bipartisan policy.
"Frankly he made himself look stupid and made our country look stupid," he told reporters in regional Victoria on Thursday.
But Mr Morrison said Mr Shorten was being inconsistent and taking his cues from other countries.
"Bill Shorten doesn't want to consider this question at all," Mr Morrison told reporters in Singapore.
"He says there should be a process, and when the government engages in a process he says we shouldn't follow the process.
"I will leave it to Bill Shorten to explain the contradiction of that position."
The prime minister also said Australia's foreign policy will not be determined by any other country.
"I'm disappointed the Leader of the Opposition would be so quick to take cues on Australia's foreign policy from those outside Australia," he said.
Mr Morrison should not delay in making a call on the plan if he has already decided he won't go ahead with it, Mr Shorten said.
"I don't see why this nation has to wait until Christmas so Mr Morrison can climb off his high horse," he said.
"Let's just get on with it. No shame in admitting you're wrong, and let's just get onto the next issue, including improving our trade opportunities in our region."
Mr Morrison attempted to rescue a stalled Australia-Indonesia trade pact when he met Indonesian President Joko Widodo at the East Asia Summit on Wednesday.
The leaders were due to sign the two-way trade deal this week but finalising the agreement has been put on hold until the embassy issue is resolved.
Indonesia - the world's most populous Muslim nation and a key Palestine supporter - is furious at the potential relocation.
The government announced the potential shift in the week in October before a by-election in Wentworth, where more than 12 per cent of voters are Jewish.
