Departing from a long-standing US position, Trump promised he would recognise Jerusalem as Israel's capital and relocate the American mission there, a pledge that drew a fierce rebuke from Palestinian officials and concern from the European Union.
"The US embassy must move here to Jerusalem," Netanyahu said after his weekly cabinet meeting.
"Jerusalem is Israel's capital and it would be good if the American embassy wasn't the only one to move here... I think that with time the majority of embassies will move to Jerusalem," he was quoted as saying by his office.
The city's status is one of the thorniest issues of the decades-long Israeli-Palestinian conflict.
Israel occupied the West Bank and east Jerusalem in 1967. It later annexed east Jerusalem in a move never recognised by the international community.