Palestinian leaders voted on Monday to call for the suspension of recognition of Israel as they met in response to US President Donald Trump's declaration of Jerusalem as Israel's capital.

The vote ordered the Palestine Liberation Organisation to suspend its recognition of Israel until it "recognises the state of Palestine", cancels its annexation of east Jerusalem and stops settlement activity, a statement said.

It was unclear if the vote by the Palestinian Central Council, a high-ranking arm of the PLO, was binding. A previous vote by the council in 2015 to suspend security coordination with Israel was never implemented.