The US President reversed a decades old US policy on Israel as he announced yesterday the American embassy will move from Tel Aviv to Jerusalem but Saudi Arabia claimed it “represents a bias against the rights of the Palestinian people”.

The controversial move has sparked international condemnation from the Palestinians, the UK, Turkey and other nations.

Now the Saudi royal court has released a statement describing the announcement as a “big step back in efforts to advance peace process”, adding it “violates US neutral position regarding Jerusalem”.

The royal court also expressed “deep sorrow” over Trump’s decision, which Saudi Arabia described as unjustified.

Speaking at the White House yesterday, the President said his announcement was nothing more than a "recognition of reality and the right thing to do, something that has to be done".

He confirmed that the US will recognise Jerusalem as the capital of Israel after days of speculation.

And he directed the State Department to begin looking for a site for an embassy in Jerusalem, in a move from their existing site in Tel Aviv - a process which is expected to take years, although Trump has signed a six-month delay to the move.

He also said he would remain deeply committed to helping facilitate a peace agreement acceptable to both Israelis and Palestinians despite his announcement, adding "the United States would support a two state solution if agreed to by both sides".

Theresa May has condemned Trump’s decision as “unhelpful' as she vowed the UK's embassy will remain in Tel Aviv.

Mrs May said: "We disagree with the US decision to move its embassy to Jerusalem and recognise Jerusalem as the Israeli capital before a final status agreement.

"We believe it is unhelpful in terms of prospects for peace in the region. The British Embassy to Israel is based in Tel Aviv and we have no plans to move it.

"Our position on the status of Jerusalem is clear and long-standing: it should be determined in a negotiated settlement between the Israelis and the Palestinians, and Jerusalem should ultimately be the shared capital of the Israeli and Palestinian states.

"In line with relevant Security Council Resolutions, we regard East Jerusalem as part of the Occupied Palestinian Territories."

She added: "We share President Trump's desire to bring an end to this conflict.

"We welcome his commitment today to a two-state solution negotiated between the parties, and note the importance of his clear acknowledgement that the final status of Jerusalem, including the sovereign boundaries within the city, must be subject to negotiations between the Israelis and the Palestinians.

"We encourage the US Administration to now bring forward detailed proposals for an Israel-Palestinian settlement.

"To have the best chances of success, the peace process must be conducted in an atmosphere free from violence. We call on all parties to work together to maintain calm."

Labour leader Jeremy Corbyn described Trump's move as "reckless".