US President-elect Donald Trump said he will nominate bankruptcy attorney David Friedman as US ambassador to Israel.
Mr Friedman said he looked forward to taking up his post in Jerusalem, implying a move from Tel Aviv that would mark a break in long-standing US foreign policy.
While campaigning for the presidency, Mr Trump pledged to switch the embassy from Tel Aviv, where it has been located for 68 years, to Jerusalem, all but enshrining the city as Israel's capital regardless of international objections.
"(Friedman) has been a long-time friend and trusted adviser to me. His strong relationships in Israel will form the foundation of his diplomatic mission and be a tremendous asset to our country as we strengthen the ties with our allies and strive for peace in the Middle East," Mr Trump said in a statement.
He had made clear during his campaign that he would support Israel in a number of critical areas, and said he would not put pressure on Israel to engage in talks with the Palestinians.
The United States and other powers do not regard Jerusalem as Israel's capital.
Other nations' embassies are located in Tel Aviv - and do not recognise Israel's annexation of Arab East Jerusalem following its capture in the 1967 Middle East war.
One of the thorniest issues in the Israeli-Palestinian dispute is resolving the rival demands for Jerusalem's future.
Palestinians regard the ancient city - which contains sites sacred to the Jewish, Muslim and Christian faiths - as the future capital of a separate state.
Mr Friedman, who specialises in litigation and bankruptcy law, said in the statement that he would work tirelessly to "strengthen the unbreakable bond between our two countries and advance the cause of peace within the region, and look forward o doing this from the US embassy in Israel's eternal capital, Jerusalem".
Israeli Prime Minister Benjamin Netanyahu, who has had a fractious relationship with Democratic President Barack Obama, has welcomed Mr Trump's election, chatting with him by phone and posting a video on Facebook promoting ties with the United States.
In an interview with Israeli left-leaning newspaper Haaretz, in June, Mr Friedman was asked whether Mr Trump would support the creation of an independent Palestinian state - a bedrock of US foreign policy which supports a two-state solution.
"The answer is - not without the approval of the Israelis," said Mr Friedman. "If the Israelis don't want to do it, so he doesn't think they should do it...He does not think it is an American imperative for it to be an independent Palestinian state."
There was no immediate comment from the Israel embassy in Washington on the news.
Mr Friedman is also considered far-right on issues, including settlement building and has advocated for the annexation of the West Bank, which Israel captured from Jordan in the 1967 war.
The Obama administration has been highly critical of Israeli settlement construction in the occupied West Bank and East Jerusalem.
Most countries view all Israeli settlements on occupied land that the Palestinians seek for their own state as illegal.
The Palestinians, who want to establish a state in the West Bank and Gaza, with East Jerusalem as its capital, say settlements are a fundamental obstacle to peace.
The last US-backed talks on statehood collapsed in 2014.
US presidential candidates have in the past promised to move the US embassy to Jerusalem and then reneged, deciding ultimately that the city's status should first be resolved by parties to the conflict.
Earlier this month, Mr Obama renewed the presidential waiver, signed by every US president for the past two decades, against moving the embassy to Jerusalem for another six months.
It effectively means any action by Mr Trump would be delayed until at least June.