Former foreign minister Alexander Downer feared Australia was seen as "overly supportive" of Israel while it was isolated "in poor company" supporting the Middle East nation in international forums.

A cabinet submission from 1998, released on Wednesday by the National Archives of Australia, that canvassed Australia's approach to an upcoming visit by Israeli leader Benjamin Netanyahu reveals tensions within the Howard government over the Middle East and particularly Israel and Palestine.

Alexander Downer's 1998 cabinet submission on a visit by Israel leader Benjamin Netanyahu noted Australia should not be seen as "unduly supportive" of Israel or Palestine. Credit:AAP

Mr Downer's submission noted Mr Netanyahu was a "controversial figure" and his visit would "require careful handling". He said Australia's relationship with Israel was sound, with the visit a chance to expand it with a heavy focus on possible business and trade links.

Australia's long-standing position, supporting Israel's right to exist while acknowledging Palestine's right to self-determination, was reaffirmed in Mr Downer's submission.