Israel voiced dismay Friday at the Vatican's first accord with Palestine and warned the move would harm efforts to renew peace talks.

The foreign ministry expressed its "regret regarding the Vatican decision to officially recognise the Palestinian Authority (PA) as a state, in the agreement signed today," spokesman Emmanuel Nahshon said in a statement.

"This hasty step damages the prospects for advancing a peace agreement, and harms the international effort to convince the PA to return to direct negotiations with Israel," he said.