Donald Trump | Mark Wilson/Getty Images Trump cancels UK trip, blames embassy ‘bad deal’ The decision to build a new embassy was made during George W. Bush’s presidency.

U.S. President Donald Trump said he won't travel to London to open a new American embassy because of an Obama era "bad deal" in which the "best located and finest embassy in London" was sold for "peanuts."

The president tweeted: "Reason I canceled my trip to London is that I am not a big fan of the Obama Administration having sold perhaps the best located and finest embassy in London for 'peanuts,' only to build a new one in an off location for 1.2 billion dollars. Bad deal. Wanted me to cut ribbon-NO!"

The decision to build a new embassy was made when George W. Bush was president, with the announcement of the new location dated October 2008, a month before Barack Obama was elected, Sky News first reported.

Trump's tweet came after the Daily Mail reported he had decided to cancel the visit, with British media speculating the president was concerned he would get a hostile reception.

The Guardian reported U.S. Secretary of State Rex Tillerson is likely to take Trump's place.

Trump was embroiled in a public spat with British Prime Minister Theresa May late last year after he retweeted three anti-Muslim videos from far-right group Britain First.

Woody Johnson, the American ambassador to the U.K., said last month he believed Trump would visit Britain in the new year.