NSW Right power broker Tony Burke will lead the push for a historic shift in Labor's position on the recognition of a Palestinian state at the party's July national conference, under an agreement hammered out with Bill Shorten.

Mr Burke will propose a resolution at conference expected to mirror that put at NSW Labor conference last July. It stated if no progress was made towards a two-state solution "and Israel continues to build and expand settlements, a future Labor government will consult like-minded nations towards recognition of the Palestinian state".

A similar motion is widely expected to succeed at the federal level, too.