AUSTRALIA could still back a Palestine state winning a place at the United Nations, despite ''hot debate'' inside the government and determined opposition from the Prime Minister, Julia Gillard.

The Foreign Affairs Minister, Bob Carr, has told Israeli and Palestinian officials in recent weeks Australia will not take a final decision on the potentially explosive issue until the wording of any resolution is clear.

But Labor's longest-serving foreign minister, Gareth Evans, has warned Australia could be on the ''wrong side of history'' by opposing a Palestinian push to win observer status at the UN General Assembly.

''The issue has been hotly debated within the government over the last year but it is one on which the Prime Minister has very strong views, and her views have so far prevailed,'' Professor Evans said on Thursday night.