"The German Government does not support this position because the status of Jerusalem is to be resolved in the framework of a two-state solution," Merkel's spokesperson Steffen Seibert said, in a statement on Twitter.
In line with this announcement, the US is also shifting its embassy from Tel Aviv to the holy city, again becoming the first country to take such a step.
With this step, Trump has fulfilled one of its campaign promises and reversed decades-long US policy on this matter.
Jerusalem is considered a sacred place, which is home to Jewish, Christian and Muslim holy sites. However, it is also a disputed territory, contested by both Israel and Palestine, which sees it as a capital of its future state. (ANI)