The move follows the November decision by the United Nations to upgrade the Palestinians' status to that of a "non-member observer state."
President Mahmoud Abbas said Sunday that all official Palestinian stamps, stationery and documents will now bear the new name.
A statement from his office said the move was aimed at enhancing Palestinian "sovereignty on the ground" and was a step on the way to "real independence." Israel still controls most of the West Bank.
Israel objected to the Palestinian statehood bid at the U.N., calling it a unilateral step aimed at bypassing direct peace negotiations. Abbas denied that.
Israel had no comment Sunday.
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