"We are in contact with at least ten countries, some of them in Europe to discuss the move," Deputy Foreign Minister Tzipi Hotovely told a public radio.
Hotovely's statement comes a day after Guatemala said it would move its embassy to the city. The move was called "shameful" by Palestinian officials.
Hotovely said also US President Donald Trump's statement would "trigger a wave" of such moves.
Earlier on Decemeber 19, the United States vetoed a United Nations Security Council (UNSC) resolution, calling for the withdrawal of President Donald Trump's recognition of Jerusalem as Israel's capital.
The U.S. was the sole dissenting vote.