Benjamin Netanyahu will become the first sitting Israeli prime minister to make an official visit to Australia in 2017, after accepting an invitation from Foreign Minister Julie Bishop.

Ms Bishop is wrapping up a three day visit to Israel and the Palestinian Territories on Monday, after meeting with Israel's President Reuven Rivlin and visiting Israel's Holocaust museum, Yad Vashem.

A picture provided by the Israel Government Press Office shows Prime Minister Benjamin Netanyahu meeting with Australian Foreign Minister Julie Bishop. Credit:GPO/Getty

As part of the visit Ms Bishop discussed Australia and Israel's bilateral relationship, the ongoing Middle East peace process and Australian development assistance to the Palestinian Territories.

Ms Bishop told Mr Netanyahu, leader of the country's right-wing Likud party, that Australia and Israel enjoy a deep friendship, recognising the contribution Australia's Jewish community make to the nation.