Prime Minister Petteri Orpo (NCP) on Saturday said the government is not preparing to recognise Palestine.
Speaking at the NCP's party council, Orpo stressed that the issue requires further discussion within the government.
Orpo reiterated the National Coalition Party's commitment to a two-state solution in the Gaza crisis.
"That logically includes recognising the state of Palestine when the time is right," he said.
Earlier this summer, President Alexander Stubb said he would be ready to recognise a Palestinian state if the government were to propose it.
Stubb's remarks and the issue of Palestine have caused friction within the government, prompting Orpo to say the matter requires further discussion within the cabinet.
"Recognition can only be given once, so it must be considered carefully," he added.
The key issue, according to Orpo, is to ensure aid reaches civilians in Gaza.
"The humanitarian crisis in Gaza is devastating. For Finland, the most important thing is to get aid to civilians immediately. Hostages must be released, and a ceasefire must be achieved in the area," Orpo said in his remarks.
Israel has announced plans to take control of Gaza City. In his speech, Orpo appealed to Israel, saying, "I strongly urge Israel to reconsider this decision. It would not help the situation."
Achieving lasting peace and a two-state model is still a long process, according to the PM. "Ultimately, this depends on Hamas laying down its arms and civilian authorities taking control in Palestine, including Gaza," he added.
The matter of Palestine will be addressed in the future in cooperation with the president, Orpo said.
The prime minister also responded to reporters' questions about recent cost-cutting proposals floated by Finance Minister Riikka Purra (Finns), which included plans to abolish the Finnish National Agency for Education.
Orpo refused to comment in detail on any of Purra's suggestions.
"It would be categorically foolish to reject everything when billion-euro savings need to be found. We will review the proposals. Of course, there are things that are unpleasant or seem difficult, even impossible," Orpo said, without going into details.
Earlier this week, Orpo told Finnish news agency STT that while he knew Purra would make a savings target proposal, he was unaware of specifics.
