Watch LIVE: U.S. Ambassador to Israel David Friedman presenting his credentials to Israeli President Reuben Rivlin.
Trump has two weeks to make that decision, before the embassy automatically moves based on a 1995 United States law mandating the location switch.
"I think that the White House is playing word games", Greg Miller said on CNN's "Erin Burnett OutFront".
In his remarks, Friedman noted that Rivlin, "as a seventh generation Jerusalemite, you continue the connection to Jerusalem that began with King David some 3000 years ago".
Friedman, a former bankruptcy lawyer, arrived in the country on Monday, just a week before Trump's planned arrival to the country. The global community doesn't recognize Israeli's claim of dominion over the eastern part of the city.
He has also advocated moving the embassy to Jerusalem.
He will have to decide by the beginning of June whether to continue with the policy of his predecessors and again block the embassy's transfer.
The rival claims to Jerusalem lie at the heart of the Israeli-Palestinian conflict and no countries now have their embassies in occupied Jerusalem, instead basing them in Israel's commercial capital Tel Aviv. His arrival comes amid ongoing speculation over the U.S. administration's intention to move the embassy from Tel Aviv to Jerusalem.
All during the conversations, the US officials emphasized that the Trump visit was not a formal state visit, but only a "working visit", thereby exempting him from at least some of the protocols.
Trump himself has sent mixed signals over how he will approach the decades-old conflict.
Trump is then set to meet with Prime Minister Benjamin Netanyahu, followed by a private dinner for Trump and his wife, Melania, hosted by Netanyahu and his wife Sara.
Friedman will reportedly take up residence in Jerusalem, while he will work out of the embassy in Tel Aviv and hold all official events at the ambassador's residence in Hertzeliya. "This is in the West Bank".
Netanyahu's office released a statement in response to the reports, saying "Israel is convinced that this statement is contrary to the position of President Trump, as expressed in his firm opposition to the most recent U.N. Security Council Resolution".
Friedman's support for settlements has drawn particular attention.
Commenting on President Donald Trump's visit to Israel next week, Rivlin said it "is very important".
It said the group raises about $2 million a year for Beit El.
The Palestinians want al-Quds as the capital of their promised future state.
During an off-camera briefing in the afternoon, White House Press Secretary Sean Spicer said the Western Wall is in fact in Jerusalem, but would not say it is in Israel.
It later annexed east Jerusalem and claims the entire city as its undivided capital. Israel is proud of all the medical care we give to the injured.