Donald Trump will nominate bankruptcy attorney David Friedman as the US ambassador to Israel, the President-elect's team said in a statement.
"(Friedman) has been a long-time friend and trusted adviser to me. His strong relationships in Israel will form the foundation of his diplomatic mission and be a tremendous asset to our country as we strengthen the ties with our allies and strive for peace in the Middle East," Trump said in the statement.
Friedman said he would work tirelessly to "strengthen the unbreakable bond between our two countries and advance the cause of peace within the region, and look forward to doing this from the U.S. embassy in Israel’s eternal capital, Jerusalem."
The US embassy has for decades been located in Tel Aviv.
Trump had pledged during the presidential campaign to move it to Jerusalem, a move almost certain to provoke objections from Muslims around the world.
The United States and other powers do not regard Jerusalem as Israel's capital and do not recognise Israel's annexation of Arab East Jerusalem following its capture in the 1967 Middle East war.