Michael Danby, the prominent Victorian Labor MP and parliamentary secretary for the arts, took out the full-page election ad in the Australian Jewish News.
The provocative move by the Right faction operative is a repudiation of the Foreign Minister's controversial hardening of the government's rhetoric against Israeli settlements in the West Bank.
Earlier this month, Senator Carr angered members of the Jewish community by telling an audience at Sydney's Lakemba mosque that "we say unequivocally all settlements on Palestinian land are illegal under international law and should cease".
Mr Danby is a prominent Jewish MP and his electorate contains a significant Jewish community.
"Bob Carr is a well-read and enthusiastic Foreign Minister," the ad says. "But he's not always right and that's why I have reminded him of the carefully calibrated and even-handed Australian policy on peace between Israel and the Palestinians."
Some Labor MPs are worried their party is softening its support for Israel partly in an attempt to appeal to Muslim communities in Sydney's western suburbs.
Senator Carr's spokesman said the comments merely reflected the government's position as outlined in January.
Mr Danby said last night that Senator Carr's emphasis on settlements was "ill timed, given the peace negotiations that are currently taking place in Washington", which included the issues of settlements and land swaps.
"The negotiations are the only hopeful and peaceful element of the current turmoil of the Middle East including the mass slaughter that is taking place in Syria, Iraq, Lebanon and now Egypt," he said.