The minister made the remarks at a joint press conference with Egyptian Foreign Minister Sameh Shukri and Saeb Erekat, secretary general of the Palestine Liberation Organization, where he stressed on Jordan's rejection of any plan to relocate the USA embassy from Tel Aviv to Jerusalem.
Sunday's statement from Netanyahu's office came after US Secretary of State Rex Tillerson said Trump is still assessing the impact of the potential move.
Many observers believe that beyond Trump's pre-occupation with being the guy that closes the "ultimate deal", delivering the Israeli-Palestinian peace pact that no one believed is possible will cement the USA role in the Middle East for a long time to come.
Israel considers Jerusalem its capital and has urged the USA for years to move its embassy there from Tel Aviv.
Trump had promised during the presidential campaign to move the USA embassy from Tel Aviv to Jerusalem, which would upend US policy in the Middle East.
Israel captured east Jerusalem - where Palestinians want to establish the capital of a future independent state - from Jordan in 1967 and annexed it, a move not internationally recognized. It has long urged the global community to relocate embassies there.
USA presidents of both parties have repeatedly waived a US law requiring the embassy be moved to Jerusalem.
Palestinians argue moving the embassy would prejudge one of the most sensitive issues in the conflict, undermining America's status as an effective mediator. The most recent waiver - signed by former President Barack Obama - expires on June 1.
Netanyahu commented on Tillerson's remarks, saying that "moving the U.S. embassy to Jerusalem won't harm the peace process".
"Israel's position has often been expressed to the American administration and to the world", the statement from the prime minister's office read.
Jordan on Sunday reiterated its stance that east Jerusalem is the capital of Palestine.
In 1980, Israel declared "reunited" Jerusalem its capital in a move unrecognised by major states.
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Melissa McCarthy confronts, makes out with Trump on SNL
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