The issue is deeply controversial.
Shifting the building could be seen as a de facto recognition of Israel's claim over the whole city, including predominantly Palestinian east Jerusalem.
Foreign countries, including the United States, currently have their embassies in the Israeli commercial capital Tel Aviv since they do not recognise Israel's unilateral claim of control over all of Jerusalem.
"I hope that an absurd situation will end," Energy Minister Yuval Steinitz of Prime Minister Benjamin Netanyahu's right-wing Likud party told public radio.
Environment Minister Zeev Elkin, who also holds the Jerusalem affairs portfolio, told army radio that there was "no logical reason for this transfer to be postponed again."
Such a move, he said, "may convince other countries to do the same."
Congress passed a law in 1995 making it US policy to move the embassy to Jerusalem, symbolically endorsing Israel's claim on the city as its capital.
But the act contained a clause that has allowed each president since to issue and renew a six-month waiver on carrying out the move.
Israel occupied east Jerusalem and the West Bank in 1967. It later annexed east Jerusalem in a move never recognised by the international community.
The Palestinians see the eastern sector as the capital of their future state.
The traditional United States position is that the status of Jerusalem must be negotiated between the two sides.
The White House yesterday dismissed reports of an imminent move as "premature".
Trump postponed any change in June in order to "maximise the chances of successfully negotiating a deal between Israel and the Palestinians," the White House said at the time.
Support for Israel is a key issue in US right-wing politics.
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