The Minister for Foreign Affairs Simon Coveney has said that Ireland will recognise the state of Palestine if the impasse in negotiations with Israel is not broken.
Mr Coveney made the comments following a meeting with his Palestinian counterpart Dr Riad Malki this evening.
Recent moves by the US to open an embassy in Jerusalem and withdraw UN funding for Palestinian refugees, as well as the increasing numbers of Israeli settlements in Palestinian territory, has led to a breakdown in negotiations towards a two-state solution.
Mr Coveney said Ireland will take the decision if no there is no prospect of progress.
The Tanaiste also announced additional funding of €1m to the UN Agency for Palestine Refugees.
He highlighted the work of the UNRWA and made the announcement to coincide with the visit to Ireland of Palestinian President Mahmoud Abbas.