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The European Union has rejected the plea of Israel's Prime Minister Benjamin Netanyahu who called for the Union to follow the footsteps of the United States of America in officially recognising Jerusalem as the capital of Israel.

Federica Mogherini, the EU's foreign policy chief, met with Netanyahu on Monday in Brussels, the first visit by an Israeli prime minister to the European Union in 22 years.

"You know where the European Union stands. We believe that the only realistic solution to the conflict between Israel and Palestine is based on two states with Jerusalem as the capital of both the state of Israel and the state of Palestine along the 1967 line," Mogherini said during a press conference with Netanyahu.

"This is our consolidated position and we will continue to respect the international consensus on Jerusalem until the final status of the Holy City is resolved through direct negotiations between the parties," she said.

The Israeli prime minister, meanwhile, reaffirmed his support for Trump's decision on Jerusalem.

"Jerusalem has been the capital of Israel for the last 70 years. I think what President Trump has done is put facts squarely on the table," Netanyahu said.

"Jerusalem is Israel's capital. No one can deny. It doesn't obviate peace; it makes peace possible, because recognising reality is the substance of peace, it's the foundation of it."