Argentina and Uruguay have joined Brazil in recognising an independent Palestinian state.
Argentina's government said on Monday it had decided to recognize a Palestinian state within its pre-1967 borders, following a similar move days earlier by neighboring Brazil.
The Foreign Ministry said center-left President Cristina Fernandez had informed Palestinian President Mahmoud Abbas of the decision in a letter.
"The Argentine government shares the belief of its Mercosur partners Brazil and Uruguay that the time has come to recognize Palestine as a free and independent state," Foreign Minister Hector Timerman told reporters in Buenos Aires.
The foreign ministry said the recognition is in line with Argentina's efforts to defend the right that Palestinian people have to build and independent state, as well as the right that Israel has to live in peace with its neighbors within safe borders that are recognized internationally.
Uruguay announced soon afterwards it would recognise a Palestinian state next year.
"Uruguay will surely follow the same path as Argentina in 2011," deputy foreign minister Roberto Conde said.
"We are working towards opening a diplomatic representation in Palestine, most likely in Ramallah."
Brazilian President Luiz Inacio Lula da Silva sent a letter in late November to the Palestine government to recognize the state of Palestine based on its pre-1967 borders, the country's foreign ministry said last week.
According to Argentina's government more than 100 countries have recognized the state of Palestine within the borders it had before Israel occupied the West Bank in 1967.
The foreign ministry said the recognition was in response to a request made by Abbas during a visit to Argentina last year.
The international community backs Palestinian demands for a state in most of the Gaza Strip, the West Bank and east Jerusalem, all territories occupied by Israel in the 1967 Six Day War.
The United States and most Western governments have yet to recognize a Palestinian state.
All of the Arab countries and most of the African, Asian and Eastern European ones, such as Russia, China, South Africa and India, among others.