There have been warnings that moving the US embassy to the contested city and recognizing Quds as the occupying regime’s capital could inflame tensions across the region and sink what remains of peace efforts.
Mohammad Shtayyeh, a senior Palestinian official and Fatah central committee member who was speaking on behalf of the Palestinian leadership, said doing so would mean an "end to the two-state solution".
He said the Palestinian leadership had been informed by diplomatic contacts that Trump could call for the move in his inauguration speech on January 20.
Fatah leaders are considering whether to withdraw their recognition of Israel if the move goes through, he said.
They have added the issue to the agenda of a meeting of foreign ministers from the Organization of Islamic Cooperation on January 19 in Malaysia, he added.
Shtayyeh called for prayers at mosques throughout the Middle East on Friday as well as for churches to ring bells in protest on Sunday.
"I think and we all think that moving the embassy to Jerusalem is a dangerous step that will have dangerous consequences for the political track for our people and for our future aspirations and for the Muslim, Arab, Christian countries and people all over the world," said Shtayyeh, AFP reported.
"We are not inciting violence. Ringing a church bell ... is not a violent act. Calling for a prayer is not a violent act," he said.
Palestinian president Mahmud Abbas has written to Trump urging him not to move the embassy.
Israel occupied the West Bank and east Jerusalem in 1967. It later annexed east Jerusalem in a move never recognized by the international community.