Donald Trump is expected to make an announcement later, recognising Jerusalem as the capital of Israel.
The controversial move marks a historic shift in US policy.
The US President is also expected to confirm plans to move the American embassy from Tel Aviv to the disputed city.
He's been warned by Palestinian president Mahmoud Abbas that the plan would have 'dangerous consequences'.
Both Israel and the Palestinians claim Jerusalem as their capital, and the city contains religious sites that are sacred to Muslims and Jews.
Palestinian demonstrators have been burning images of President Trump after his decision.