Benjamin Netanyahu issued his statement late today, hours after it was announced that Trump will be visiting Israel at the end of the month.
"The state of Israel respects all religions and strictly guarantees the rights of all its citizens," the statement said.
"At the same time, Israel is fighting against militant Islam that targets Muslims, Christians and Jews alike and threatens the entire world."
Netanyahu said the meeting with Trump, set for December 28, was scheduled two weeks ago.
Trump sparked widespread outrage this week after he proposed temporarily banning all Muslims from entering the United States in the wake of a mass shooting by a husband-and-wife pair of Islamic militants that killed 14 people in San Bernardino, California.
Members of Israel's opposition condemned the visit.
Israel Radio reported that Arab parliamentarian Issawi Frej of the dovish Meretz party has asked the interior minister not to let Trump in the country.
"Imagine that a country or a candidate would say entrance to Jews is forbidden, the whole world would stand up in protest, saying this is a racist anti-Semite.
Earlier today, nearly 40 lawmakers, or one-third of the Israeli parliament, signed a petition urging Netanyahu to condemn Trump's "racist" comments and asking him for him to cancel the meeting unless Trump retracts them.
Nearly one-fifth of Israel's population is Muslim.
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