White House said President Trump is set to call Israel PM Netanyahu and Jordan King Abdullah shortly as he mulls a radical change in US policy over the status of Jerusalem.
Meanwhile, Tayseer Jaradat, Palestinian deputy foreign minister said any move to recognise Jerusalem as the Israeli capital would be a breach of international law
and "infringement to feelings" of the Palestinian people.
Turkey said it would cut ties with Israel if Trump changed US policy on Jerusalem.
French President Emmanuel Macron had expressed concern over US move to "unilaterally recognise Jerusalem as the capital of Israel" during a phone call with Trump on Monday.
European Union diplomat Federica Mogherini, said: "Any action that would undermine peace efforts to create two separate states for the Israelis and the Palestinians must absolutely be avoided."
Report said the US president may not move the embassy but could recognise Jerusalem as Israel's capital which would radically shift US policy and enrage several Arab nations, including several US allies in Europe
and West Asia.
The Arab League it was a "clear aggression" against Arabs.
Arab League chief Ahmed Abul Gheit said "given the danger of this matter if it were to happen, it would have possible negative consequences not only for the situation in Palestine but also for the Arab and Islamic region."