A senior Palestinian official has labelled Australia's position on the Middle East peace process as "extreme" after the Turnbull Government distanced itself from the final statement of the Paris peace conference.

It comes just weeks after Australia criticised last month's UN Security Council resolution, which condemned Israeli settlement activity in the occupied West Bank.

The ABC understands Australia declined to back the final statement from Sunday's Middle East peace conference in Paris because the text "welcomed" last month's UN resolution.

Australia was one of the only countries to speak out against UN resolution 2334 which demanded Israel stop all settlement activity in the occupied West Bank.

Prime Minister Malcolm Turnbull called the resolution "one-sided" and "deeply unsettling".

On Monday, Chief Palestinian negotiator Saeb Erekat issued a strongly worded statement criticising Australia's position at the Paris conference, as well as that of the United Kingdom.

"We regret and denounce the reservations made by the United Kingdom and Australia to the final statement of the Paris peace conference," Dr Erekat said.

"These reservations are groundless … we call upon both countries to correct this mistake."

Australia is choosing to stand on the "wrong side of the law" according to Hanan Ashrawi, an executive committee member of the Palestinian Liberation Organisation.

"We are actually quite unhappy with Australia," she said.

"I really don't understand frankly speaking because 2334 reflects or comes at the tail end of a trial of a series of resolutions and all of them talk about settlements or moving your own people into land that you occupy as a war crime.

"So it is shocking that Australia of all countries would decide to stand outside the global consensus."

Sorry, this video has expired Middle East correspondent Sophie McNeill speaks about Australia's stance at the Middle East Peace conference.

Asking Israel to negotiate with Palestine 'ironic'

Dr Ashrawi said it is time for a country like Australia, which is committed to the two-state solution, to back that up by recognising an independent Palestinian state.

A spokesperson for Foreign Minister Julie Bishop said Australia's long-standing position was that a Palestinian state could only be achieved through direct negotiations with Israel.

However Dr Ashrawi says Ms Bishop cannot "just keep selling us verbal statements about two states".

"When Australia repeats or Ms Bishop repeats that Australians will accept a Palestinian state only as a result of negotiations between the two parties this is extremely ironic because we are a people under occupation and we are asked to negotiate with our occupier in order to be free," she said.

The spokesperson of the Israeli Ministry of Foreign Affairs and the office of Israeli Prime Minister Benjamin Netanyahu were contacted for comment, but both declined.

AM understands that while Israel has not publicly thanked Australia for its support against the UN resolution, officials have privately expressed their thanks to the Federal Government.