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The Israeli government has revoked the visas of Australian diplomats to the Palestinian Authority, in the latest deterioration of relations between the two countries.

In a statement on social media Israeli Foreign Minister Gideon Sa'ar said he had also told the Israeli ambassador in Canberra "to carefully examine any official Australian visa application for entry to Israel".

He said the decision followed Australia's announcement that it will recognise a Palestine state.

It was "also against the backdrop of Australia's unjustified refusal to grant visas to a number of Israeli figures", he said.

These included former minister Ayelet Shaked and the Chairman of the Knesset's constitution, law and justice committee, Simcha Rothman.

Rothman's scheduled visit to Australia was stopped by the Home Affairs Department this week. The right-wing parliamentarian has made inflammatory comments including describing Gazan children as "enemies". It was decided his presence in Australia would risk a reaction from the Islamic community.

Three Australian diplomats based in Israel have visas for the Occupied Palestinian Territories. They go to the West Bank every day, where they have an office and speak with the Palestinian Authority.

They also provide consular assistance to Australians when needed, and were involved in the exit of Australians and family members who received visas to come to Australia in the early stages of the conflict.

These diplomats are likely now to leave Israel, given they cannot do the work assigned to them.

Before announcing Australia's planned recognition, which will happen at the United Nations next month, Prime Minister Anthony Albanese spoke with the leader of the Palestinian Authority, Mahmoud Abbes, and obtained various assurances ahead of the announcement.

The Israeli government's decision will make the Australian government's dialogue with the Palestinian Authority more difficult and complicated.

Foreign Minister Penny Wong said Israel's decision was "an unjustified reaction" following the recognition decision.

"At a time when dialogue and diplomacy are needed more than ever, the Netanyahu government is isolating Israel and undermining international efforts towards peace.

"We will continue to work with partners as we contribute international momentum to a two-state solution, a ceasefire in Gaza and release of the hostages."

Sa'ar said antisemitism was "raging in Australia". "The Australian government is choosing to fuel it by false accusations, as if the visit of Israeli figures will disrupt public order and harm Australia's Muslim population. It is shameful and unacceptable."

Opposition leader Sussan Ley said she regretted how the relationship between the governments of Australia and Israel was deteriorating. On the visa rejection, she said Rothman was "an elected member of the Israeli parliament and it's a very unusual thing to refuse a visa".

This coming Sunday pro-Palestine marches will be held in more than 30 cities and towns across the country. There will also be a demonstration at Pine Gap, the joint Australian-US facility near Alice Springs.