The Palestinian foreign ministry on Monday slammed as "shameful" Guatemala's decision to transfer its embassy to occupied Jerusalem after the United States recognised the city as the capital of Israel.

"It's a shameful and illegal act that goes totally against the wishes of church leaders in (occupied) Jerusalem" and violates a non-binding UN General Assembly resolution condemning the US move, the ministry said in a statement.

"The state of Palestine considers this as a flagrant act of hostility against the inalienable rights of the Palestinian people and international law," it said.

"The state of Palestine will act with regional and international partners to oppose this illegal decision."