Donald Trump told Mahmoud Abbas of his decision, having delayed his decision on the matter on Monday, Palestine's
news agency reported.
"President Abbas warned of the dangers of such a decision on the peace process, security and stability in the region and the world," said Nabil Abu Rudeina, spokesperson for the Palestinian presidency.
"President Abbas will continue his contacts with world leaders and leaders in order to prevent such unacceptable and unacceptable action," he added.
Turkey's President Erdogan said he considered the matter a 'red line' for Muslims and would cut ties with Israel should Trump decide to move the US embassy. Turkey joins numerous Arab and Muslim nations who have issued such warnings over the past week, including Morocco and Qatar.
The US State Department has warned American embassies around the world to prepare for widespread violence and protests ahead of the president's speech on Wednesday.
During the American presidential election campaign last year, Trump expressed strong support for Israel, and promised to order the relocation of the US embassy from Tel Aviv to Jerusalem on his first day in office.
He has since delayed the move, and was expected on Monday to decide whether to sign a legal waiver delaying the embassy plans for a further six months, as every previous US president has done since 1995.
Senior US officials expect Trump to issue a temporary order to delay moving the embassy despite the campaign pledge.
Israel regards Jerusalem as its capital, a position nearly the entire world rejects saying its status should be determined in peace talks with the Palestinians.
Jerusalem is a key issue in the Israeli-Palestinian conflict, and many have warned against the far-reaching consequences of such a move. Muslim nations called yesterday for a summit should President Trump decide to recognise Jerusalem as Israel's capital.