French President Emmanuel Macron said on Thursday evening that his country would officially recognise a Palestinian state at a UN meeting in September.
Sir Keir has previously said the UK should reserve recognition of Palestinian statehood for when it would have the “greatest impact” – without specifying when this would be.
But in a report published on Friday, the committee said the government should make the move “while there is still a state to recognise”.
“An inalienable right should not be made conditional,” the report adds.
“The government cannot continue to wait for the perfect time because experience shows that there will never be a perfect time.”
That section of the report was backed by all six Labour MPs who voted, including chairwoman Dame Emily Thornberry, and the two Lib Dems on the committee.
It was not endorsed by its two Conservative members, Aphra Brandreth and Sir John Whittingdale, who said the UK should only back the move as part of a wider two-state solution to the Israel-Palestinian conflict.
It is not unusual for select committees to be split on controversial issues but they will normally try to speak with one voice.
The Tory MPs on the foreign affairs committee made an unsuccessful attempt to change the report to reflect their views, arguing that recognition should accompany the release of hostages taken by Hamas in October 2023, and the creation of Palestinian authorities without Hamas supporters.
Around 60 MPs reportedly called for the UK to immediately recognise Palestine in a letter earlier this month, with London major Sir Sadiq Khan also making the call on Wednesday.
In a statement on Thursday evening condemning “unspeakable and indefensible” conditions in Gaza, Sir Keir said statehood was an “inalienable right”.
He reiterated his call for a ceasefire in the conflict, adding this would “put us on a path” towards recognising a Palestinian state.
Business Secretary Jonathan Reynolds had earlier said Labour ministers were “deeply committed” to recognition, but they wanted it to be “meaningful,” adding: “At the minute, there is not a Palestinian state there”.