Germany and Austria earlier on Monday said they were suspending bilateral development aid to Palestinians, while others such as Italy had said suspending aid was not up for discussion.
It is unclear whether the suspensions in development aid will also apply to such assistance.
Varhelyi said all new budget proposals for Palestinian aid were also postponed until further notice.
The Israeli flag has been hoisted above the chancellor's office and the Foreign Ministry after the shock Hamas assault.
Asked if Italy would follow Germany and Austria in suspending development aid, the foreign ministry spokesperson said this was not under discussion.
Persons:
Amir Cohen, Oliver Varhelyi, Varhelyi, Mahmoud Abbas, Fatah, Alexander Schallenberg, Svenja Schulze, Rishi Sunak, Andrew Gray, Francois Murphy, Sarah Marsh, Markus Wacket, Angela Amante, Kate Holton, Mark Heinrich, Alison Williams, Nick Macfie
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REUTERS, BRUSSELS, European, United Nations, Union, EU, EU Commission, West Bank, Palestinian Authority, Austrian, European Union, Foreign Ministry, Social Democrats, Greens, Thomson
Locations:
Gaza, Ashkelon, Israel, Germany, Austria, Italy, BERLIN, Europe, West, Berlin, Palestinian, Berlin's, Brandenburg, United Nations, Britain, Brussels, Vienna, Rome, London