Washington: President Donald Trump reversed decades of US policy on Wednesday and recognised Jerusalem as the capital of Israel, despite warnings from around the world that the gesture further drives a wedge between Israel and the Palestinians.

In a speech at the White House, Trump called his decision a "a long overdue" step to advance the peace process, saying that: "While previous presidents have made this a major campaign promise, they failed to deliver. Today, I am delivering."

The president also said his administration begin a process of moving the US embassy in Tel Aviv to Jerusalem, which is expected to take years.

Trump aides contend the move reflects the reality of Jerusalem as the centre of Jewish faith and the fact that the city is the seat of the Israeli government.