Palestinian foreign minister Riad al-Malki decided to recall PLO envoy to Washington Husam Zomlot, official Palestinian news agency WAFA said, without providing further details.
Trump's December 6 announcement regarding the disputed city deeply angered the Palestinians and led to weeks of unrest.
Palestinian officials had earlier said president Mahmud Abbas would refuse to meet US Vice President Mike Pence during a visit to the region that had been planned for December but which was later cancelled.
Violence since Trump's announcement has left 13 Palestinians dead, with most killed in clashes with Israeli forces.
Today, while marking the 53rd anniversary of his Fatah movement, Abbas called Jerusalem "the eternal capital of the Palestinian people".
Jerusalem's status is perhaps the most sensitive issue in the Israeli-Palestinian conflict.
Israel sees the entire city as its capital, while the Palestinians want the eastern sector as the capital of their future state.
Israel occupied east Jerusalem and the West Bank in the 1967 Six-Day War. It later annexed east Jerusalem in a move never recognised by the international community.
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