The White House says it is at the “very beginning” of discussing plans to move the US Embassy in Israel from Tel Aviv to Jerusalem.
The statement follows reports in Israeli media that President Donald Trump had imminent plans to announce the move.
President Trump is scheduled to speak to Israeli Prime Minister Benjamin Netanyahu by telephone later.
Like many presidential candidates, Mr Trump promised to make the embassy move.
But presidents have avoided following through on that pledge in part because of concerns that it would inflame tensions in the Middle East.