Israeli Prime Minister Benjamin Netanyahu attends the weekly cabinet meeting at the Prime Minister's office in Jerusalem. Picture: Sebastian Scheiner/AP

Tel Aviv - Israeli Prime Minister Benjamim Netanyahu praised US President Donald Trump's decision to recognize Jerusalem as Israel's capital and move the US embassy there.

"This is an historic day. The statement by US President Donald Trump is an important milestone in the history of Jerusalem," Netanyahu said in a video statement.

"President Trump, we thank you for your just and courageous decision to recognize Jerusalem as the capital of Israel and to begin preparations for the opening of the American embassy here," the premier added, "I call upon other countries to follow the lead of the United States." 

"And the simple truth and reality is this - there will be no peace without recognition of Jerusalem as the capital of Israel," he said.