Israel and Morocco have agreed to upgrade their diplomatic ties, including opening embassies in each other's countries and appointing ambassadors, following talks between their foreign ministers in New York.

The meeting was hosted by United States Ambassador to the United Nations Mike Waltz on Wednesday. Israeli Foreign Minister Gideon Saar and Moroccan Foreign Minister Nasser Bourita both attended.

The two countries established diplomatic relations in 2020 under the US-brokered Abraham Accords, which normalised Israel's ties with several Arab states.

The ministers also agreed to advance economic and trade relations, including completing two agreements by the end of this year covering investment protection and the prevention of double taxation.

The two sides agreed to expand air travel, including reinstating direct flights operated by carriers from both nations. Plans for high-level bilateral visits in the coming months were also confirmed.

"[The] establishment of full diplomatic, peaceful and friendly relations between Morocco and Israel is in the common interest of both countries and will advance the cause of peace," the US mission to the UN said in a joint statement issued on behalf of all three countries.

The announcement came one day after the sixth anniversary of the Abraham Accords, an initiative spearheaded by US President Donald Trump during his first term in office. The United Arab Emirates, Bahrain, Morocco, Sudan and Kazakhstan have all joined the accords, which are aimed at normalising ties between Arab and Muslim-majority countries and Israel.