Senior government minister Josh Frydenberg says it’s in Australia’s national interest to strengthen ties with Israel, by shifting our embassy to Jerusalem.

The idea has sparked anger from Palestine and its allies, as it ignores the Muslim-nation’s claim to the Holy City.

But the Treasurer tells Alan Jones, it’s the best way to achieve a two-state solution.

“West Jerusalem, where Donald Trump established the American embassy, would always be Israel’s capital as part of a two-state solution.

“And I think it’s in Australia’s national interest with the only democracy in the Middle East.”

The government has been slammed for bringing up the issue days out from the Wentworth by-election, an electorate with a large Jewish population.

Mr Frydenberg says it was a “principled and positive” act by the Prime Minister.

Click PLAY below for the full interview