Sweden's new government says it has recognised a Palestinian state, a move declared by the prime minister as a priority for the left-leaning minority coalition.

The EU member country has joined two other western European nations - Malta and Cyprus - which have officially recognised Palestine.

Foreign minister Margot Wallstrom said Sweden had decided on the move because the "criteria of international law" had been fulfilled, saying there is "a territory, a people and government".

The EU has said that it would recognise a Palestinian state "when appropriate" and has urged that negotiations be resumed as soon as possible to achieve a two-state solution.

Earlier this month, MPs in the UK held a symbolic vote in favour of recognising Palestine as a state.

PM David Cameron said at the time that he looked forward to the day when the UK recognises the state of Palestine but insisted it will only happen when a peaceful two-state solution is achieved.

Ms Wallstrom said she hoped Sweden's "excellent co-operation (with Israel) would continue" and that the decision would be met "in a constructive way".

But Israel was quick to condemn the move. Foreign minister Avigdor Lieberman described it as "a miserable decision that strengthens the extremist elements and Palestinian rejectionism".

"It's a shame that the government of Sweden chose to take a declarative step that only causes harm," he added.