Israel said Wednesday it would shut down its embassy in Paraguay.
Israel will close its embassy in Paraguay and recall the ambassador to discuss the issue, according to a statement by the Israeli Prime Minister's Office.
The move comes after the Latin American country announced it would relocate its embassy from Jerusalem to Tel Aviv.
Palestinian Foreign Minister Riyad Al-Maliki also announced late Wednesday his country would open its embassy in Paraguay's capital of Asuncion, following Paraguay's move to relocate its embassy.
Palestinian President Mahmoud Abbas has instructed its government to open an embassy in Asuncion, Maliki said in a written statement, according to Palestinian news agency WAFA.
Praising Paraguay's move, Maliki said the embassy would be opened as soon as possible.
He also called on other countries to open their embassies in Paraguay for its "principled stance" on the issue.
Paraguay’s Foreign Minister Luis Alberto Castiglioni on Wednesday said the embassy, which previously been moved from Tel Aviv to Jerusalem, would be relocated to Tel Aviv.
"In a bid to assure a wide, fair and permanent peace in the Middle East, Paraguay wants to contribute to the regional diplomatic efforts," the top diplomat said.
After the U.S. and Guatemala, Paraguay on May 21 moved the embassy from Tel Aviv to Jerusalem.