Jerusalem should ultimately be the shared capital of Israeli and Palestinian states, British foreign minister Boris Johnson told his Palestinian counterpart Riyad al-Malki on Monday, a statement from Britain's foreign office said.

"I reiterated the UK’s commitment to supporting the Palestinian people and the two-state solution, the urgent need for renewed peace negotiations, and the UK’s clear and longstanding position on the status of Jerusalem," Johnson said.

"It should be determined in a negotiated settlement between the Israelis and the Palestinians, and Jerusalem should ultimately be the shared capital of the Israeli and Palestinian states."

President Donald Trump reversed decades of US policy on December 6 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.

Read: Trump recognises Jerusalem as Israel's capital, in reversal of policy

In a speech at the White House, Trump said his administration would also begin a process of moving the US embassy in Tel Aviv to Jerusalem, which is expected to take years.

The status of Jerusalem - home to sites holy to the Muslim, Jewish and Christian religions - has been one of the thorniest issues in long-running Mideast peace efforts.

Israel considers the city its eternal and indivisible capital and wants all embassies based there. Palestinians want the capital of an independent Palestinian state to be in the city's eastern sector, which Israel captured in the 1967 Middle East war and annexed in a move never recognised internationally.