The Palestinians have announced they are recalling their envoy to the United States for “consultations”, weeks after President Trump recognised Jerusalem as the capital of Israel.
Palestinian President Mahmoud Abbas said he would not accept any US peace plan in the wake of Mr Trump‘s move.
Protests and clashes broke out in the Gaza Strip after the announcement.
A UN resolution calling on the US to cancel the decision was backed overwhelmingly by the General Assembly.
Thirteen Palestinians have died in violence since Mr Trump‘s announcement, most killed in clashes with Israeli forces.
Palestinian Foreign Minister Riad al-Maliki was recalling the Palestinian Liberation Organisation (PLO) envoy Husam Zomlot, Palestinian news agency Wafa said.
The status of Jerusalem goes to the heart of the Israeli-Palestinian conflict.
Israel occupied the east of the city, previously occupied by Jordan, in the 1967 Middle East war and regards the entire city as its indivisible capital.
The Palestinians claim East Jerusalem as the capital of a future state and its final status is meant to be discussed in the latter stages of peace talks.
On Sunday Mr Abbas called Jerusalem the “eternal capital of the Palestinian people”.
Israeli sovereignty over Jerusalem has never been recognised internationally, and all countries currently maintain their embassies in Tel Aviv. However, President Trump has told the US state department to start work on moving the US embassy.