Donald Trump has accused the Palestinians of "disrespecting" the US in a blow to the administration's attempt to broker peace in the region.

Palestinian officials refused to meet with Mr Trump's vice president, Mike Pence, following a row over the US' controversial recognition of Jerusalem as the Israeli capital.

During a warm meeting with Benjamin Netanyahu, the Israeli Prime Minister at the World Economic Forum in Davos, Switzerland, Mr Trump said he would be withholding hundreds of millions of dollars in aid from the Palestinians until they agree to US-brokered peace talks.

"They disrespected us a week ago by not allowing our great vice president to see them," the US president said.

"We give them hundreds of millions," Mr Trump added.

"That money is not going to them unless they sit down and negotiate peace."