US President Donald Trump will recognise Jerusalem as Israel's capital and direct the state department to begin the lengthy process of moving the US embassy from Tel Aviv to the city, according to senior White House officials.
The announcement, which is expected at 18:00 GMT on Wednesday, comes amid global condemnation of the move.
The officials said in a briefing that Trump's expected announcement is "recognition of a reality".
The officials added that moving the embassy "will take years" and Trump will continue to sign the six-month waiver to keep the embassy in Tel Aviv until the relocation process is complete.
Leaders in the Middle East and elsewhere had warned Trump that such a move would have grave implications for the so-called peace process and on regional stability.
Trump held phone calls with the leaders of Palestine, Jordan and Egypt on Tuesday to inform them of his intention to move the embassy.
Palestinian President Mahmoud Abbas warned Trump against "the dangerous consequences such a decision would have to the peace process and to the peace, security and stability of the region and of the world," Navil Abu Rudeina, Abbass' spokesman, said in a statement after Trump's call.
Jordan's King Abdullah II told Trump that such a decision would have "dangerous repercussions on the stability and security of the region", according to a statement released by the palace.
Egyptian President Abdel Fattah el-Sisi, in a statement, also cautioned Trump against "taking measures that would undermine the chances of peace in the Middle East".
Earlier on Tuesday, Turkish President Recep Tayyib Erdogan threatened to cut diplomatic ties with Israel if Trump went through with the embassy move, calling it a "red line for Muslims".