Trump invites Israel's Netanyahu to February talks

Washington : US President Donald Trump on Sunday discussed Iran with Benjamin Netanyahu and invited the Israeli prime minister to visit the White House early next month.

The two leaders spoke by telephone and "agreed to continue to closely consult on a range of regional issues, including addressing the threats posed by Iran," the White House said in a statement, signalling the new administration's tougher line on Tehran.

The statement also said that Trump invited Netanyahu "to an early February meeting at the White House."

Israel approved hundreds of new settler homes in east Jerusalem Sunday hours before the telephone call, which an Israeli statement described as "very warm".

But a potentially explosive plan to annex a large West Bank Jewish settlement unilaterally was shelved until after Netanyahu and Trump meet.

"The prime minister expressed his desire to work closely with President Trump," Netanyahu's office said in a statement.

Trump has pledged strong support for Israel and vowed during his campaign to recognise Jerusalem as the country's capital despite the city's contested status.

But the White House statement concerning the call did not mention Trump's suggestion to move the US embassy from Tel Aviv to Jerusalem -- a transfer that would break with the consensus of the vast majority of the international community, which does not recognise Jerusalem as Israel's capital.

The White House on Sunday appeared to play down suggestions that a decision was imminent.

"We are at the very beginning stages of even discussing this subject," White House press secretary Sean Spicer told AFP.

Like other major powers, the US maintains its embassy in Tel Aviv pending a resolution to the Israeli-Palestinian conflict and Jerusalem's status.

Israel captured Arab east Jerusalem during the 1967 war and later annexed it -- in a move not recognised by the international community -- declaring all of the city its unified capital.

The Palestinians claim east Jerusalem as the capital of their future state.

During the phone call on Sunday, Trump also stressed the need for direct talks between Palestinians and Israelis.

"The president emphasised that peace between Israel and the Palestinians can only be negotiated directly between the two parties, and that the United States will work closely with Israel to make progress towards that goal," the White House said.

The US is Israel's most important ally, providing more than $3 billion a year in defence aid, but former president Barack Obama grew frustrated with Israeli settlement building.

He declined to veto a December 23 UN Security Council resolution condemning settlements. Trump had called for the resolution to be vetoed.