A very tight race in Brazil appears to have been won by Luiz Inácio Lula da Silva, an ex-convict who welcomed Iran's Holocaust-denying former president Mahmoud Ahmadinejad and laid a wreath on Yasser Arafat's grave.

At the grand opening of Brazil's trade mission in Jerusalem, Brazilian President Jair Bolsonaro's son reiterated his father's commitment to move the nation's embassy to Israel's capital.

The office will focus on partnerships involving technology, agriculture, water, and cyber-security.

Benjamin Netanyahu, the first sitting Israeli PM to visit Brazil, arrived in the country's capital for the inauguration of its new, pro-Israel president.

Iran denounced Jair Bolsonaro's plan to move Brazil's embassy in Israel to Jerusalem, the capital of the Jewish state.

'There is no reason to criticize dialogue, especially when the criticism comes from those who did nothing,' Bolsonaro tweeted.

Netanyahu issued a statement from Rio explaining that Bolsonaro told him he will definitely move Brazil's embassy in Israel to Jerusalem.

'Today we are forging a great alliance with a huge power of almost 250 million people, which is turning a new page with us,' Netanyahu said of Israel's relations with Brazil.

'The one who decides the capital of the State of Israel is you, not other nations,' Bolsonaro said.

Brazil has a new president who told an Israeli journalist during his campaign that a visit to the Jewish state would be his first diplomatic mission.