Prime Minister Anthony Albanese has insisted he wants the Port of Darwin returned to Australian ownership, as an American private equity firm makes a play to buy the strategically significant asset from its Chinese owners.

Both Labor and the Coalition announced during the election campaign that they would move to strip Chinese firm Landbridge of its controversial 99-year lease of the port, which sits directly opposite Darwin’s Larrakeyah Defence Precinct.

The prospect of a forced divestiture has angered Beijing, which feels Chinese companies are being unfairly singled out for punishment over national security concerns.

Albanese also downplayed the prospect of joining any international effort to impose sanctions on leading Israeli politicians over the war in Gaza and settlement building in the occupied West Bank, despite a call from Labor elder statesman Gareth Evans to sanction Israeli Prime Minister Benjamin Netanyahu and two of his far-right cabinet members.

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Asked if he would support a bid by US investment firm Cerberus to buy the port, Albanese told reporters: “We’ve said we want to see it in Australian hands. I notice this speculation which is there, but we’ll examine the process. We’re determined to make sure it’s in the national interest for it to be in Australian hands.”

He left some wriggle room on overseas offers, saying: “But if there are other proposals, we’ll work those through. But we’ll work those through on a commercial basis.”

Labor has been keen for Australian superannuation firms to investigate taking control of the port.

During a visit to Darwin last week, Chinese ambassador Xiao Qian said Landbridge should not be forced to end its lease of the port.

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“Such an enterprise and project deserves encouragement, not punishment,” Xiao said. “It is ethically questionable to lease the port when it was unprofitable and then seek to reclaim it once it becomes profitable.

“China and Australia are comprehensive strategic partners. The two sides should foster mutual trust, as mutually beneficial co-operation aligns with our shared interests.”

Landbridge, which secured its long-term lease of the port in 2015 for $506 million, has insisted that the port is not for sale and that it has no intention of ending its lease.

“Landbridge has not yet received any offers or engagement from the government at any level,” non-executive director Terry O’Connor said.

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“It is business as usual at Darwin Port, as we continue to focus on the growth of our operations.”

Defence Industry Minister Pat Conroy struck a similar tone to Albanese’s when asked whether the government would support US ownership of the port.

“We’ve been very clear that we want to see the port back in Australian hands,” he said.

“We’re going through the process now of looking through all the options, but our commitment is, at the end of the process, the Port of Darwin will be in Australian hands.”

The Australian Financial Review reported that Australian freight company Toll had partnered with Cerberus on the bid in a move that could help ease concerns about foreign ownership of the port, even by a trusted ally such as the US.

The Australian Strategic Policy Institute has detailed extensive connections between Landbridge, the Chinese Communist Party and the People’s Liberation Army, raising concerns about the national security implications of the leasing agreement from both Coalition and Labor MPs.

Asked whether Australia could join countries such as Canada, the United Kingdom and France in imposing further sanctions on Israel, Albanese said: “No, we follow our own path and Australia determines our own foreign policy. And we’ve been very consistent the whole way through. And what people don’t say when they put forward ideas like this is what that means.”

The government last year imposed sanctions on seven Israeli settlers and a hardline settler group known for setting up new illegal outposts.

Evans, who served as foreign minister from 1988 to 1996, told this masthead that imposing “financial sanctions, travel bans and the like on the most egregious Israeli promoters and perpetrators of violations of Palestinian human rights” would send an important message to Israel.

He also urged the government to use a major international conference in New York next month to recognise a Palestinian state.

“Recognition is ALP policy, and [Foreign Minister] Penny Wong and her colleagues have been wrestling only with the timing – and the timing now is absolutely right,” Evans said.