The Trump administration says recognizing Jerusalem as the Israeli capital is a "reflection of reality" and that the physical location of the embassy has no bearing on the US commitment to a two-state solution in the Middle East.
Israel's Foreign Ministry has praised a decision by the president of Guatemala for the Central American country to move its embassy in Israel to Jerusalem, saying the announcement represented "true friendship" between the two countries. US officials have said that move could take at least two years.
"God bless you, my friend, President Jimmy Morales, God bless both our countries, Israel and Guatemala", Netanyahu said, switching to English, in remarks to a weekly meeting of his Likud party faction in parliament. Netanyahu said on Twitter, "It is just the beginning and it is important".
"We talked about the excellent relations we have had since Guatemala supported the creation of the State of Israel".
Morales, like Trump, was a television entertainer with no real political experience before becoming president of Guatemala in 2016.
Guatemala was one of nine nations that voted last week with the United States when the UN General Assembly overwhelmingly adopted a non-binding resolution denouncing US President Donald Trump's recognition of Jerusalem as Israel's capital.
The eight countries on the United States side of the vote were: Guatemala, Honduras, Israel, the Marshall Islands, Micronesia, Nauru, Palau and Togo. Adding that, "the state of Palestine considers this as a flagrant act of hostility against the inalienable rights of the Palestinian people and global law".
'The state of Palestine will act with regional and worldwide partners to oppose this illegal decision'.
In 1967, Israel took over East Jerusalem from Jordan and declared the whole city as its "eternal indivisible capital" in 1980.
Trump's December 6 announcement has triggered weeks of clashes between Palestinian protesters and Israeli security forces, which have left 12 Palestinians dead.
The announcement makes Guatemala the first country to follow the USA decision to move its embassy to Jerusalem.