JULIA GILLARD has been forced to withdraw Australia's support for Israel in an upcoming United Nations vote after being opposed by the vast majority of her cabinet and warned she would be rolled by the caucus.

As a result, Australia will abstain from a vote in the United Nations General Assembly on a resolution to give Palestine observer status in the UN, rather than join the United States and Israel in voting against the resolution as Ms Gillard had wanted.

In a direct rebuff of her leadership, Ms Gillard was opposed by all but two of her cabinet ministers - Bill Shorten and Stephen Conroy, both of the Victorian Right - during a heated meeting on Monday night.

She was then warned by factional bosses she faced a defeat by her own backbench when the caucus met on Tuesday morning.