Angela Merkel 'does not support' Trump's Jerusalem announcement

German Chancellor Angela Merkel "does not support" the decision by US President Donald Trump to recognise Jerusalem as Israel's capital, her spokesman said today.

The German government "does not support this position because the status of Jerusalem can only be negotiated within the framework of a two-state solution," spokesman Steffen Seibert wrote on Twitter.

German foreign minister Sigmar Gabriel, for his part, said he feared Trump's decision would lead to a "new escalation in the conflict between Israel and the Palestinians".

The decision will likely throw "fuel on the fire", he told public broadcaster ARD.

"We hope that (our) worries can be... calmed. But this about face is already a big problem."

Trump's decision to recognise Jerusalem as the capital, which marks a major departure from decades of American diplomacy, prompted a wave of condemnations.