"It will take some time to find a site, to address security concerns, design a new facility, fund a new facility and build it", the official said, indicating that the move would not be immediate.
Lebanese President Michel Aoun said the Jerusalem decision was dangerous and threatened the credibility of the United States as a broker of Middle East peace.
On the same day, Trump told the leader of the Palestinian Authority during a phone call that he intends to move the US Embassy in Israel from Tel Aviv to Jerusalem. "Jerusalem is a red line and the resistance will not allow any desecration of it".
All eyes are on Jerusalem, which US President Donald Trump has officially recognised as Israel's capital despite warnings not to do so from within and beyond the Arab world.
The Palestinian Islamist group Hamas, which had dominated Gaza since soon after Israel ended a 38-year occupation of it in 2005, said Trump had committed a "flagrant aggression against the Palestinian people".
Trump's move comes close to fulfilling a campaign promise, and will delight his political donors and the conservative and evangelical base so vital for the embattled president.
"The sad truth is there is no peace process right now", said Rob Leikind, director of the American Jewish Committee.
The city even has different names.
The announcement shattered decades of US foreign policy and triggered an angry response from Palestinians, who took to the streets burning flags and tires and chanting anti-American slogans.
While the move has been publicly welcomed by many Israeli politicians, it has the potential to unsettle Israel's warming relations with Sunni Arab nations at a time when they share an interest in countering the perceived threat of Iranian expansion in the region - as well as spark protests and torpedo the White House's nascent peace efforts.
Jerusalem is a city that is sacred to three of the great monotheistic faiths: Judaism, Christianity and Islam, and each has sites of great religious significance there. "If agreed to by the two parties". The protest was largely peaceful, although some of the demonstrators threw coins and other objects at the consulate.
Israeli Prime Minister Benjamin Netanyahu and other hard-liners use the term "undivided" to describe the Jewish capital.
"Wrong steps in this direction would bring irreversible consequences", he said, adding that such a move could "bring a new conflict between religions".
At the heart of Jerusalem's Old City is the hill which is known to Jews across the world as Har ha-Bayit, or Temple Mount, and to Muslims internationally as al-Haram al-Sharif, or The Noble Sanctuary.
However, Palestinian President Mahmoud Abbas said the U.S. shift "is a declaration of withdrawal from the role it has played in the peace process".
The European Union's top diplomat said on Tuesday that "any action that would undermine" peace efforts to create two separate states for the Israelis and the Palestinians "must absolutely be avoided".
But the discord over the US decision raises questions about what capital cities represent, and why they are located where they are.
Jordanian citizens protested the decision on Wednesday, chanting Anti-American slogans, calling the authorities to abolish peace treaties with Israel. He has been quoted as saying that US "hands are tied on the issue of Palestine" and they cannot reach their goals. He added that Trump was declaring war in the Middle East, against Muslims and Christians who would not accept Jerusalem under Israeli control. Jordan and the Palestinians also called for an emergency meeting of the Arab League in Cairo.
"(The move) is the culmination of the crime of usurping Palestine and displacing the Palestinian people", said the Syrian state news agency SANA, quoting a foreign ministry source.
In the decades since, the international community - including the US - has refused to recognise Israel's sovereignty over Jerusalem.