Israeli Prime Minister Benjamin Netanyahu on Wednesday praised President Trump's decision for the U.S. to recognize Jerusalem as the capital of Israel, calling it a "historic day" and an "important step toward peace," according to The Associated Press.

“Israel’s historical and national identity is receiving important expressions every day, but especially today,” Mr Netanyahu said.

The Israeli leader said the country was "profoundly grateful," and that the country would "continue to work with the president and his team to make that dream of peace come true."

Netanyahu's comments come after Trump's announcement from the White House, in which he also signaled plans to relocate the U.S. Embassy from Tel Aviv to Jerusalem. 

"I have determined that it is time to officially recognize Jerusalem as the capital of Israel," Trump said. 

“The record is in. After more than two decades of waivers, we are no closer to a lasting peace agreement between Israel and the Palestinians,” the president said. “It would be folly to assume that repeating the exact same formula would now produce a different or better result."

The decision is a sign Trump is looking to fulfill his campaign promise to move the embassy, despite opposition from the international community, which doesn't recognize Jerusalem as Israel's capital.

The move is likely to inflame tensions with Palestinians, who claim east Jerusalem as the capital of a future independent state. 
Past administrations have signed waivers every six months to delay the move in an effort to minimize tensions. 

"While previous presidents have made this a major campaign promise, they failed to deliver," the president said. "Today, I am delivering."