SYDNEY, Australia — Australia announced on Saturday that it now recognizes West Jerusalem as the capital of Israel, and will move its Tel Aviv embassy once a peace settlement is reached.

“Australia now recognizes West Jerusalem, being the seat of the Knesset and many of the institutions of government, is the capital of Israel,” Prime Minister Scott Morrison of Australian said on Saturday.

“It is the right of every country to determine its national capital,” Mr. Morrison said in a speech to the Sydney Institute, a public affairs forum.

“We look forward to moving our embassy to West Jerusalem when practical, in support of and after final status determination,” he added.