Anthony Albanese is dreaming if he thinks he helped create momentum towards a peaceful resolution of the conflict in Gaza, an opposition frontbencher says.

The prime minister has welcomed progress on a peace plan between Israel and Hamas, with US President Donald Trump revealing Israel has agreed to a limited troop withdrawal as negotiations for a ceasefire and hostage release continue.

Mr Albanese said there was no question Australia's decision to recognise Palestinian statehood at a recent United Nations meeting, alongside allies the UK, Canada and France, played a minor role in helping the move towards peace.

Industry Minister Tim Ayres on Sunday echoed the sentiment, saying Australia was regarded as a genuine player by its partners and had helped build momentum.

"I think that Austr

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