Dr Kerryn Phelps who is contesting Malcolm Turnbull's blue ribbon seat of Wentworth has denounced the government's sudden and controversial decision on Tuesday to consider relocating the Australian embassy in Israel from Tel Aviv to Jerusalem as "politically timed".
The Jewish vote in Wentworth is believed to account for around 13 per cent of the primary vote.
Dr Phelps, who is Jewish, told forum at the NSW Jewish Board of Deputies on Tuesday night said the announcement was made "without a proper analysis of the defence, trade and security implications".
But she has not ruled out supporting such a move, if she wins Wentworth, saying she would ask for a security briefing to help her decide.
Mr Sharma said Mr Morrison's announcement - which would bring Australia into line with the US which has already moved its embassy to the holy city - had nothing to do with Saturday's by-election.
It was driven by a UN resolution which required Australia declare its political intentions, he added.
Multiple voters at Tuesday's forum told AAP they felt split on the issue.
They want Australia to proactively support Israel's right to self-determination.
October 15: Candidates for the Wentworth by-election attend a community forum at the Bondi Surf Bathers Lifesavers Club. Source: AAP
Jerusalem is a city contested by the three major world religions - Christianity, Judaism and Islam.
All have their own sacred sites in the Jerusalem and all share one site, Temple Mount.
Meanwhile internal Liberal party polling shows Wentworth could fall to an independent candidate in this weekend's byelection.
Kerryn Phelps is leading the Liberal's Dave Sharma with 55 per cent to 45 per cent of the two-party preferred vote in the Sydney eastern suburbs electorate.
Mr Turnbull, who lost his job as prime minister in August, held the seat with a two-party majority of almost 18 per cent.
The polling, published in The Australian, is bad news for Prime Minister Scott Morrison whose coalition holds government with a one-seat majority.
A loss for the party in Wentworth means the government will have to rely on independent crossbench MPs to govern, ahead of the next federal election due in May.
The polling also shows Dr Phelps, a former Australian Medical Association president, has increased her momentum in the seat since last week, when both candidates were sitting on 50 per cent each.
