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Mr Trump says he is making good on US legislation and presidential pledges dating back decades.

Workmen on Monday put up street signs to the United States embassy due to open in Jerusalem in one week, a move hailed as historic by Israel but loathed by Palestinians.

Instead, Secretary of State John Sullivan will lead the presidential delegation for the historic event, the White House announced in a statement Monday. Jerusalem is the eternal capital of the Jewish People and now, the world will begin to recognize this.

"I also stress, as President Trump has said in December, the boundaries of Israeli sovereignty in Jerusalem remain subject to negotiations between the parties, and we remain committed to achieving a lasting and comprehensive peace that offers a brighter future for both Israel and the Palestinians".

A number of Israeli dignitaries are also expected to attend the festive event in Jerusalem's Arnona neighborhood at the building now housing the USA consulate.

According to a picture sent by Barkat's office, the white signs read "U.S. Embassy" in English, Hebrew and Arabic.

On Monday, in preparation for the move, the US Embassy in Tel Aviv changed its Twitter handle to @usembassyjlm, announcing the change with a tweet.

"Those who will attend the ceremony will send a signal that they are encouraging the trampling of global legitimacy and the inherent rights of the Palestinian people", Erekat said as quoted in the statement.

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Israel captured East Jerusalem from Jordanian control in the 1967 Middle East war and annexed it in a move not recognised internationally.

View of the US Consulate in Jerusalem's Arnona neighborhood, February 24, 2018.

Friedman, who owns a home in Jerusalem, will "continue to divide his time between his official residence in Herzliya and a residence in Jerusalem during the initial phases of the embassy move, as this is a multi-year process", the official said.

Palestinians say that moving the embassy would prejudge one of the most sensitive issues in the conflict - the status of Jerusalem - and undermine the US' status as an honest mediator.

The city has been designated as "occupied" under global law since the 1967 Arab War, which Palestinians want as the capital of their future state.

On Monday, Paraguay said it was planning to move its embassy from near Tel Aviv to Jerusalem on May 21 or 22.

Trump said last week that he "may" go to Jerusalem for the opening himself.

Guatemala has already relocated its embassy to Jerusalem and will officially open the facility on May 16, in a ceremony that may be attended by President Jimmy Morales.