"This is a historic day," Israeli Prime Minister Benjamin Netanyahu says.

"[Jerusalem has] been the capital of Israel for nearly 70 years. Jerusalem has been the focus of our hopes, our dreams, our prayers for three millennia. Jerusalem has been the capital of the Jewish people for 3,000 years.

"It was here that our temples stood, our kings ruled, our prophets preached.

"From every corner of the earth, our people yearned to return to Jerusalem, to touch its golden stones, to walk its hallowed streets. So it's rare to be able to speak of new and genuine milestones in the glorious history of this city.

"Yet today's pronouncement by President Trump is such an occasion."

The BBC's Richard Colebourn highlights Mr Trump's claim that recognising Jerusalem as Israel's capital "doesn't impact" talks aimed at reaching a two-state solution with the Palestinians.

Trump's speech was very much aimed toward his American audience, the BBC's Suzanne Kianpour writes from Washington.

The American Israel Public Affairs Committee, the largest pro-Israel lobbyist organisation in Washington, have released several tweets commending Trump's "momentous announcement".

Image source, Getty Images

Trump: "This decision is not intended in anyway to reflect a departure from our strong commitment to facilitate a lasting peace agreement.

"We want an agreement that is a great deal for the Israelis and a great deal for the Palestinians. We are not taking a position on any final status issues, including the specific boundaries of the Israeli sovereignty in Jerusalem or the resolution of contested borders.

"Those questions are up to the parties involved. The United States remains deeply committed to helping facilitate a peace agreement that is acceptable to both sides."

The Elders, a group of former leaders founded by Nelson Mandela, say the US decision presents "a grave threat to peace across the Middle East".

Former United National Secretary General Kofi Annan wrote: " I deeply regret today’s decision by the US President, reversing a long-held position and breaking with the international consensus on Jerusalem.

"I hope Palestinians and regional Arab powers will react with restraint, and US allies will do all they can to realign Washington’s policy with international norms.

"All parties must avoid stoking tensions which could all too easily spill over into violence."

Palestinians in impoverished Rahah, the southern Gaza Strip, are expressing their anger about President Trump's announcement, burning images of him, Israeli Prime Minister Benjamin Netanyahu and the Israeli flags.

Image source, EPA

Mr Trump says the US is prepared to back "a two-state solution if agreed to by both sides".

The head of the liberal pro-Israel advocacy group J Street has decried Mr Trump's decision on social media.

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

"My announcement today marks the beginning to a new approach to the conflict between Israel and the Palestinians," President Trump says.

He confirms that he will acknowledge Jerusalem as the Israeli capital.

Mr Trump said that delaying recognition of Jerusalem as the capital of Israel has "done nothing to achieve peace".

Mr Trump has started his speech calling for a new strategy for peace.

"We cannot solve our problems by repeating the same failed strategies of the past," he said.

The Palestinian general delegate to the UK earlier warned that Mr Trump would be "declaring war" on the Middle East should he acknowledge Jerusalem as the capital of Israel.

Security has been stepped up at some US embassies in the Middle East ahead of Mr Trump's announcement, ABC News is reporting.

The military has been drafted in to bolster security in the region, it says.

On Tuesday, the US embassy in Israel advised its diplomats and their families not to conduct personal travel in Jerusalem’s Old City and the West Bank "until further notice".

More on Mr Trump pointing out that previous presidents have expressed support for this move.

Although it flies in the face of US policy on the ground, in 1995 the US Congress passed a bill, the Jerusalem Embassy Act, external, recognising Jerusalem as Israel's capital and calling for the US embassy to relocate there. The move was supported by both Bill Clinton and George W Bush when they came into office, but both presidents ended up signing waivers postponing the implementation of the legislation over concerns about national security.

Image source, AFP

The Israeli flag has been projected onto part of the wall surrounding Jerusalem's Old City ahead of Mr Trump's announcement.

Image source, Reuters

Image source, AFP

Mr Trump's expected decision to recognise Jerusalem as Israel's capital has been criticised by leaders from within the Muslim world and from the wider international community.

Some have warned of violence and bloodshed as a result.

Here are the reactions from Israelis, Palestinians and the wider Muslim world.

Hours before making his announcement on Wednesday, US President Donald Trump said that the move to recognise Jerusalem as Israel's capital was "long overdue".

"Many presidents have said they want to do something and they didn't do it," he said.

"Whether it's courage or they changed their mind, I can't tell you."

As Mr Trump prepares to announce his plans for Jerusalem, here's a video guide explaining the city's importance.