Prime Minister Malcolm Turnbull danced with the Jewish community at a Synagogue in Sydney on Friday night, as part of Chanukah celebrations.

Mr Turnbull and wife Lucy joined the gathering at Central Synagogue to mark the seventh night of Chanukah, also known as Hanukkah.

"As the candles of the Chanukah are lit each night we are reminded of the enduring resilience and courage of the Jewish people in the face of the darkest adversity," Mr Turnbull wrote on Facebook.

"Australia would not be the remarkable nation it is, the most successful multicultural society in the world, without the extraordinary contribution of the Jewish community."

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The appearance came after Foreign Minister Julie Bishop reiterated the Australian Government's support for peace between Israel and Palestine, following a UN resolution demanding an end to Israeli settlements.

Ms Bishop said the Government remained "firmly committed to a two-state solution, where Israel and a Palestinian state exist side-by-side in peace and security, within internationally recognised borders".

"Australia urges both sides to refrain from steps that damage the prospect for peace and to resume direct negotiations for a two-state solution as soon as possible," the statement added.

British PM Theresa May criticises Kerry

Ms Bishop's comments followed those of US Secretary of State John Kerry, who criticised the Israeli Government's settlement building on Palestinian land, saying it was "jeopardising peace" in the Middle East.

On Friday, British Prime Minister Theresa May also distanced the UK from the comments, scolding Mr Kerry for describing the Israeli Government as the most right-wing in Israeli history.

The US State Department said it was surprised by the remarks from Ms May's office. ( Reuters: Hannah McKay )

Britain voted for the UN resolution that angered Israeli Prime Minister Benjamin Netanyahu and says that settlements in the occupied territories are illegal.

A spokesperson for Ms May said that it was clear that the settlements were far from the only problem in the conflict.

The British Government took particular issue with Mr Kerry's description of Mr Netanyahu's coalition as "the most right-wing in Israeli history, with an agenda driven by its most extreme elements".

"We do not believe that it is appropriate to attack the composition of the democratically-elected government of an ally," Ms May's spokesman said.

The US State Department said it was surprised by the remarks from Ms May's office and said Mr Kerry's comments were in line with Britain's own policy.

It pointedly also thanked Germany, France, Canada, Jordan, Egypt, Turkey, Saudi Arabia, Qatar, the United Arab Emirates for support.

Mr Netanyahu has been witheringly critical of Mr Kerry's speech.

In a statement released shortly after it was delivered, Mr Netanyahu accused Mr Kerry of bias and said Israel did not need to be lectured to by foreign leaders.

Mr Netanyahu said he looked forward to working with President-elect Donald Trump.

ABC/Reuters