The Organisation of Islamic Cooperation (OIC) has declared eastern al-Quds (Jerusalem) as the capital of Palestine, rejected the US stance as "dangerous", and called on the international community to follow in its footsteps.
The group of Muslim leaders on Wednesday called on all countries to "recognise the State of Palestine and East Jerusalem as its occupied capital".
In a statement, the OIC added that the 57-member group remains committed to a "just and comprehensive peace based on the two-state solution".
It also called on the UN to "end the Israeli occupation" of Palestine and declared US President Donald Trump's administration liable for "all the consequences of not retracting from this illegal decision".
"[We] consider that this dangerous declaration, which aims to change the legal status of the [city], is null and void and lacks any legitimacy," the group said.
Marwan Bishara, Al Jazeera's senior political analyst, said the summit highlighted that Palestinians, Arabs and Muslims continue to be committed to peace.
"Now, Muslim countries in addition to a whole lot of others that are allied with the Palestinian cause will recognise Jerusalem as the capital of Palestine," he said.
"And those Islamic countries are ready to sever relations to punish any one country that follows in the footsteps of the United States in recognising Jerusalem as the capital of Israel."