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Turkish President Recep Tayyip Erdogan has urged leaders of Muslim nations to recognise Jerusalem as the "occupied capital of the Palestinian state".

Addressing a summit of the Organisation for Islamic Co-operation, he said the US decision to recognise the city as Israel's capital was "null and void", BBC News reported.

Mr Erdogan also again accused Israel of being a "state of terror".

Palestinian leader Mahmoud Abbas said the US had "disqualified itself from playing a role in the peace process".

"We shall not accept any role for the United States in the peace process. They have proven their full bias in favour of Israel," he told the summit.

Mr Erdogan threatened to cut Turkish ties with Israel before Mr Trump's announcement last week, though he made no mention of this in his speech.

Turkey and Israel only restored diplomatic relations in 2016, six years after Turkey severed ties in protest at the killing of nine pro-Palestinian Turkish activists in clashes with Israeli commandos on board a ship trying to break Israel's naval blockade of Gaza.

Mr Erdogan instead urged a unified response by Muslim nations to Mr Trump's Jerusalem decision.

"I invite all the countries that value international law and justice to recognise Jerusalem as the occupied capital of the Palestinian state," he said.

"Those who fight with their friends forget to fight with their enemies," he added. "We need a diplomatic solution. We have to stop Israel gaining more land from Palestine day by day. And we must not accept the policies and attitude Israel has been displaying day by day."

To note, Armenian Foreign Minister Edward Nalbandian issued comments on the status of Jerusalem following the decision of US President Donald Trump to recognize Jerusalem as the capital of Israel.

“The status of Jerusalem is one of the most important issues on the international agenda and it could be solved through the negotiations within the context of the acceptable solution for the parties to the Israeli-Palestinian conflict. This can pave the way for the establishment of a lasting peace and security,” the minister said.