Trump, however, has not set any deadline to move the embassy from Tel Aviv to Jerusalem.
In a post on his official Facebook account, Mr Morales said that after talks with Israeli Prime Minister Benjamin Netanyahu, he made a decision to instruct Guatemala's Foreign Ministry to move the embassy.
"We talked about the excellent relations we have had since Guatemala supported the creation of the State of Israel".
Romania was among the 35 countries that abstained at the UN General Assembly vote Thursday condemning President Donald Trump's recognition of Jerusalem as the capital of Israel.
USA announces $285M cut in 2018-19 United Nations operating budget
Trump's threat appears to have had some kind of impact with multiple countries like Australia abstaining from the vote . Despite the threats by Trump, 128 countries supported the resolution, with 35 abstaining and 9 voting against it.
No other country has their embassy for Israel in Jerusalem, though the Czech Republic has said it is considering such a move. "One of the most important topics [of the conversation] was the return of the embassy of Guatemala to Jerusalem".
Guatemala is to move its embassy in Israel to Jerusalem, following US President Donald Trump's controversial decision on the holy city.
The two nations are, along with El Salvador, in what is known as the Northern Triangle of Central America.
In Bethlehem on Friday, some Palestinian protesters held anti-Trump banners reading, "Mr. Trump, it's not your land to decide to whom it belongs, Jerusalem is ours and it belongs to us", and "Jerusalem is the capital of Palestine". The 128-9 vote indicated that few countries favor the US decision.
Gujarat results 'zabardast jhatka' to BJP, says Rahul
Commenting on the BJP-Shiv Sena alliance, Munde said it is clear that the two parties are not very comfortable with each other. Rahul said PM's home has given a message to the BJP and Modi that the anger within them would not work.
"God bless you, my friend, President Morales", Israeli Prime Minister Benjamin Netanyahu said in a statement, referring to his Guatemalan counterpart, Jimmy Morales.
Guatemala and Israel were joined by Honduras, the Marshall Islands, Micronesia, Nauru, Palau and Togo in voting with the United States and opposing the measure.
Several significant USA allies abstained from the United Nations vote, among them Australia, Canada, Mexico and Poland.
According to a breakdown of how countries in the United Nations voted regarding Jerusalem on December 21, Israel is increasingly backed by Central American states, the Caribbean islands, Africa and Asia, whereas it is quickly losing the support of European states, as compared with the previous vote in 2012, the Jerusalem Post reported.
Emirates stops flying to Tunisia
UAE's Minister of State for Foreign Affairs Anwar Gargash wrote on Twitter that the ban was temporary and due to security reasons. Tunisian rights groups issued a statement on Saturday condemning the UAE measures as "discriminatory and racist".
Many governments have long said the fate of Jerusalem must be resolved through negotiations.