CBNNews.com - JERUSALEM, Israel - Costa Rica's decision to formally recognize a Palestinian state was a great disappointment to Israel.

"We would like to express our disappointment over this regretful decision of the government of Costa Rica to establish full diplomatic relations with the 'state of Palestine,'" Israeli Foreign Ministry spokesman Arye Mekel said.

Following the announcement, Israeli officials postponed Wednesday's meeting with Costa Rican President Oscar Arias.

"We are looking to reschedule ," said Costa Rican Foreign Minister Bruno Stagno Monday.

According to Stagno, his country's decision to establish full diplomatic relations with the Palestinians was meant to encourage peace talks.

"We thought it was necessary to send a message to both sides about the need to sit down and negotiate on the key issues in the conflict," Stagno said following the announcement.

In August 2006, Costa Rica and El Salvador, the only countries maintaining embassies in Jerusalem, both decided to relocate to Tel Aviv.

While Israel regards an undivided Jerusalem as its capital, most nations are unwilling to recognize that concept as reality.

Source: The Jerusalem Post