Donald Trump's decision to make Jerusalem Israel's capital has been met with a wave of disapproval from the international community.
The diplomatic fallout is to include a special meeting of the UN Security council.
Antonio Guterres, United Nations Secretary-General said there was "no alternative to the two-state solution. There is no Plan B".
"It is only by realizing the vision of two states living side by side in peace, security and mutual recognition, with Jerusalem as the capital of Israel and Palestine, and all final status issues resolved permanently through negotiations, that the legitimate aspirations of both peoples will be achieved."
Israel captured east Jerusalam in 1967 and annexed it in a move not recognised internationally. The city is home to some of the most holy sites for the Jews, Muslims and Christians.
'Ring of fire'
Turkish president Recep Tayyip Erdoğan said Trump's announcement threw the Middle East into a "ring of fire."
Malaysian Prime Minister Najib Razak had earlier called on Muslims across the world to oppose the decision.
"I call on all Muslims across the world to let your voices be heard, make it clear that we strongly oppose any recognition of Jerusalem as Israel's capital for all time," Najib said in his speech at an annual gathering of his political party in Kuala Lumpur.
Saudi Arabia, Lebanon and Qatar all described the change of policy as dangerous and Egypt, Indonesia, Iraq and Iran were among other countries speaking out against it.
Mahmoud Abbas, Palestinian president said that the decision was "tantamount to the United States abdicating its role as a peace mediator."
Reaction in Europe was more moderate but nevertheless unequivocally negative.
French President Emmanuel Macron said he did not support President Trump's unilateral decision:
"I can only disapprove and reaffirm my position, since the decision of President Trump is a unilateral decision which only involves the United States of America. I simply reaffirm that this decision contravenes international law and UN resolutions.
German Foreign Minister Siegmar Gabriel said the move risks being viewed as biased in the pursuit of peace in the Middle East:
"We have always stayed in Tel Aviv.....our embassies are there, the European embassies are there. There is a reason for that because we don't want to appear on one side or the other. The status of Jerusalem is part of a negotiation process that ultimately has to be decided between Israelis and Palestinians."
Israel's prime minister Benjamin Netanyahu greeted Trump's announcement as "an important step towards peace."
Watch Netanyahu answer questions at a digital diplomacy conference.