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Israeli Prime Minister Benjamin Netanyahu welcomed the decision of Brazil's elected president to move his embassy from Tel Aviv to Jerusalem.
Mr. Netanyahu praised it as "historic, [and] Palestinians described the movement as "provocative and illegal".
Jair Bolsonaro, a far-right politician, expressed his strong support for Israel during his election campaign.
The status of Jerusalem is one of the most controversial issues between Israel and the Palestinians.
Israel views Jerusalem as its capital, while Palestinians seek East Jerusalem as the capital of a hoped-for Palestinian state.
"I congratulate my friend Brazilian President-elect Jair Bolsonaro for his intention of moving the Brazilian Embassy to Jerusalem, a historic, just and exciting milestone!" Mr. Netanyahu said in a statement.
Hanan Ashrawi, a Palestinian official, told the AFP news agency that "provocative and illegal measures (…) will only destabilize security and stability in the region".
The United States and Guatemala have recently moved their embassies to Jerusalem, but most countries choose to stay in Tel Aviv.
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Why is it important?
The status of Jerusalem is at the heart of the Israeli-Palestinian conflict.
Israel views Jerusalem as its "eternal and undivided" capital, while Palestinians claim East Jerusalem – occupied by Israel during the 1967 Middle East war – as the capital of a future state.
Israeli sovereignty over Jerusalem has never been recognized internationally and, in accordance with the 1993 Israeli-Palestinian peace accords, the final status of Jerusalem should be discussed during the final stages of the peace talks.
Since 1967, Israel has built a dozen settlements, housing about 200,000 Jews, in East Jerusalem. These are considered illegal under international law, although Israel disputes this.
Jerusalem is also home to key religious sites dedicated to Judaism, Islam and Christianity, including East Jerusalem.
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