Trump's reversal is a blow to Israeli hard-liners and American supporters who have pushed for the move over the years. Despite that, most experts are skeptical of Trump's chances for achieving a peace deal that eluded other US presidents. Israel considers all of the city its indivisible capital. Instead, it sees East Jerusalem as occupied by Israel.
The White House has indicated Trump had not yet made a final decision.
USA officials have said the process of moving the embassy would take at least six months and involve major adjustments in security, office and housing space and staffing at both the existing facility in Tel Aviv and the consulate general in Jerusalem. One of Trump's prominent backers, wealthy Jewish businessman Sheldon Adelson, is among the most vocal proponents of moving the embassy. His administration intends to make clear, however, that Trump remains committed to the promise he made during the 2016 presidential campaign, though it will not set a specific timetable for doing so, officials said.
"This decision is a reflection of the United States administration's keenness to make peace and build bridges of trust with partners especially after the successful Riyadh Summit and the meeting between President Mahmoud Abbas and Trump".
Successive U.S. administrations have maintained that the status of Jerusalem should be decided through negotiations.
"We are ready to start the consultation process with the USA administration", he said after Trump's announcement. He was in the process of negotiating peace with the Palestinians, who also had political claims to Jerusalem. Well, they're usually located in capital cities. Yes, the current arrangement of a USA embassy in Tel Aviv and a USA consulate in Jerusalem is a bit of a snub; it would undoubtedly irk, say, the Jordanians if we had our embassy in Aqaba instead of Amman. Israel has declared Jerusalem, a city that is central to Judaism, as its "eternal" capital.More news: Trump repeats criticism of Germany, Merkel stands by stance
The statement further accused Trump's decision of breaking his campaign promise and driving peace away.
The pro-Western kingdom had warned that such a move was a "red line" that it would bolster extremists if crossed.
In an interview in February with the newspaper Israel Hayom, which is owned by Adelson, Trump appeared to signal that he was rethinking his views on the move.
More than half of Jordan's citizens are of Palestinian descent. First, what Trump "heard from Arab leaders, starting with King Abdallah of Jordan (back in February) about the impact such a decision would have on US allies in the region both in terms of how it will affect them domestically but also complicate resetting Arab-US relations".
Efforts to move the embassy from the coast of Tel Aviv to the holy city have surfaced periodically since at least the early 1980s.More news: Arsenal beats Chelsea to win third FA Cup in 4 seasons
"The time has come to put an end to this farce", Steinitz told Army Radio. Everybody recognizes Israel as the capital of Israel. "The location of the embassy is important but reaching a resolution with the Palestinians would be even more important to Israel's security".
US President Donald Trump has signed a waiver to delay relocating the US embassy in Israel to Jerusalem from Tel Aviv, the White House says. The last waiver was signed by former President Barack Obama six months ago.
Congress passed an act two decades ago to move the embassy to Jerusalem.
On the campaign trail, Trump's pro-Israel rhetoric raised expectations that he would act quickly to move the embassy.
Republican U.S. Rep. Ron DeSantis criticized President Donald Trump's announcement Thursday that he would not immediately be ordering the relocation of the U.S. Embassy to Jerusalem. He added that the signing of the waiver should not be viewed as a change in Trump's "strong support for Israel", the statement read.More news: PS3 production ceases in Japan