Trump reached the decision after he was warned that moving the embassy could aggravate his nascent efforts at rebooting the peace process at a time when the USA has seen encouraging initial signs from the Israelis and Palestinians.
And after meeting with Palestinian Prime Minister Mahmoud Abbas this month, he said of a peace deal: "It is something that I think is frankly, maybe, not as hard as people have thought over the years".
Israeli intelligence officials are reconsidering future information-sharing with the Trump administration in light of reports that an Israeli spy's life is now at risk.
"We don't think it would be wise to do it at this time", the unnamed official told Bloomberg.
President Trump is likely to put off moving the USA embassy in Israel from Tel Aviv to Jerusalem - he's expected to sign a waiver at the end of the month that will keep the embassy in Tel Aviv for the time being.
"We're very appreciative that there will be a visit to the Kotel (Western Wall)", Mariaschin said.
Rajoub added that following final agreement two American embassies should be established in Jerusalem: "One in east Jerusalem in Palestinian territory and another in west Jerusalem in Israeli territory".More news: NHS cyber attack: A&Es 'fully open' again
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Trump himself spoke with Israeli Prime Minister Benjamin Netanyahu on Tuesday about the upcoming visit.
These comments led to vociferous protests by the Israelis, with the discussion descending into shouting, and the Israelis reminding the USA team that the Western Wall and adjacent area "is territory holy to Israel".
Since Trump's inauguration in January, Tel Aviv has increasingly become emboldened in its expansionist plans for Jerusalem al-Quds.
Wow. What an uninformed statement, especially considering that every president - starting with Harry Truman - has tried to broker a Middle East peace deal since Israel became a state in 1948.
Dennis Ross, a veteran former Middle East negotiator who has been consulted by Trump's aides, said the president must avoid raising hopes for a quick resolution of the conflict that has eluded successive USA administrations.
Israel and the Palestinian Authority both claim Jerusalem as their capital.
"As you can see, in contrast to what happened in 2009, when secretary [of state, Hillary] Clinton demanded a complete settlement freeze and Abbas still didn't show up to negotiate, here we have no demand for a settlement freeze and Abbas is prepared to meet with the prime minister of Israel without any preconditions".