U.S. President Donald Trump will on Wednesday formally recognize Jerusalem as the capital of Israel in a speech at 18:00 GMT, senior White House officials have confirmed.
Officials said the move fulfills Trump's campaign promise and claimed it had bi-partisan support in the U.S. Congress.
The decision was a recognition of the historic reality that Jerusalem has been capital of Jewish people and faith, and also modern reality that it is the seat of nearly all of Israeli government, the officials added.
Trump will direct the U.S. State Department to develop a plan to move the embassy from Tel Aviv to Jerusalem, a process that is expected to take years rather than months. No decision has been made on where the new embassy will be located.
Trump told Palestinian President Mahmoud Abbas on Tuesday that he is committed to facilitating a peace deal and believes such a deal remains possible.
The officials said Trump is prepared to support a two-state solution if agreed by two parties. They added that he recognizes that specific boundaries of Israeli sovereignty in Jerusalem are subject to final status negotiations.
The officials added that not recognizing Jerusalem as Israel's capital had done nothing to achieve peace between the sides.