"Moving the US embassy is a dangerous step that provokes the feelings of Muslims around the world," state-run Al- Ekhbariya TV quoted King Salman as telling Trump in a phone call.
Trump informed Palestinian president Mahmud Abbas of his intention to move the US embassy from Tel Aviv to Jerusalem, Abbas's office said on Tuesday.
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Ties between Saudi Arabia and the United States appeared to have warmed after the election of Trump, who chose the Gulf kingdom for his first overseas visit in May.
While the two countries have long been allies, Riyadh viewed Trump's predecessor Barack Obama as overly friendly with its arch-nemesis Iran.
Israel and Saudi Arabia have no official diplomatic relations.
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