There has been widespread criticism of the move by Washington
A protest is taking place outside the US embassy in Dublin on Friday.
It is in response to Donald Trump's decision to recognise as the capital of Israel.
The protest, organised by the Ireland-Palestine Solidarity Campaign (IPSC), will take place at the US embassy in Ballsbridge from 1.00pm.
The US move has drawn criticism worldwide, with the leader of Hamas calling for a new uprising - saying the decision "opened the gates of hell" on US interests in the Middle East.
Palestinian negotiator Saeb Erekat says Mr Trump has "destroyed any possibility" of a two-state solution with Israel.
Mr Erekat told reporters: "President Trump just destroyed any possibility of a two-state (solution).
"He has taken an action to recognise Jerusalem as capital of Israel - this is in total contradiction of agreements signed between Palestinians and Israelis.
"This step is pre-judging, dictating, closing doors for negotiations.
"And I think President Trump tonight (has) disqualified the United States of America to play any role in any peace process".
Fatin Al Tamimi, chairperson of the IPSC said the decision "is totally illegitimate, utterly anti-Palestinian and must be opposed by all people who support freedom, justice, equality and peace in the region.
"It is a unilateral and illegal move by the US".
"The US has proven it is not an honest broker in the region, but a partisan advocate for apartheid, while through its continued inaction, the international community has shown itself to be a passive observer of the Palestinian plight."
President Trump said he was directing the US State Department to move the US embassy from Tel Aviv to Jerusalem, but gave no timeline.