It also took place a day before Biden is expected to declare that the 1915 massacres of Armenians in the Ottoman Empire constituted genocide, a move that is nearly certain to infuriate Ankara and further damage ties.
Former president Barack Obama, under whom Biden served as vice president, danced around the issue by referencing pre-election statements he made recognising the genocide and resisted pressure for a statement on the centennial in 2015.
Erdogan "noted that addressing the issues of FETO's presence in the United States and USA support for the terrorist organization PKK-PYD in Syria were important to advancing Turkey-U.S. relations", the presidency said.
A year ago, while still a presidential candidate, Biden commemorated the 1.5 million Armenian men, women and children who lost their lives in the final years of the Ottoman Empire and said he would back efforts to recognize those killings as a genocide.
Biden promised a year ago during his presidential campaign to recognise the Armenian genocide.
Asked if an Armenian genocide statement was coming, State Department deputy spokesperson Jalina Porter told reporters yesterday to "expect an announcement tomorrow".
Mr Biden said his statement was "not to cast blame but to ensure that what happened is never repeated".
Joe Biden became the first U.S. president to use the word genocide for 1915 killings of Armenians.
Explaining Biden's thinking, an administration official pointed to the Democratic president's vows to put a new priority on human rights and highlighted his outspokenness on systemic racism in the United States. He argued when making the campaign pledge previous year that failing to call the atrocities against the Armenian people a genocide would pave the way for future mass atrocities.
"And we reaffirm with them our commitment to a world free of discrimination and persecution, where everyone can feel safe".
Armenians on Saturday streamed to the hilltop complex memorializing the victims of massacres, deportations and forced marches under the rule of Ottoman Turkey.
But on a more conciliatory note, Erdogan said Turkey was "ready to develop our relations with Armenia based on good neighbourhood and mutual respect".
But in a potential sign that the two leaders want to avoid further deterioration of relations, the White House said that Biden and Erdogan would meet when they are in Brussels in June for a North Atlantic Treaty Organisation summit.
In response to the USA recognition, the Israeli Ministry of Foreign Affairs issued an announcement saying "Israel recognizes the awful suffering and the tragedy of the Armenian people".
Israel's Yesh Atid party leader Yair Lapid praised the move, saying that it is "an important moral statement by President Biden". "I think Turkey will be afraid now because all countries are going to start recognizing (the genocide)". In recent years, Turkey has launched military operations against PKK enclaves in northern Iraq and against US -allied Syrian Kurdish fighters.
Biden, whose call to Erdogan to inform him of the genocide recognition was their first conversation since the U.S. leader took office three months ago, signaled he hoped to contain the fallout.
Biden's declaration follows a non-binding resolution by the U.S. Senate adopted unanimously in 2019 recognizing the killings as genocide.
"This principled stand represents a powerful setback to Turkey's century-long obstruction of justice for this crime, and its ongoing hostility and aggression against the Armenian people", he said.