If Donald Trump goes ahead with his pledge to move the US embassy in Israel from Tel Aviv to Jerusalem it will "ignite" the Palestinian people who could start a new uprising, a senior Fatah official has said.

"I believe that any American act of stupidity will ignite the Palestinian territories," Fatah Central Committee member Sultan Abu al-Einein told Egypt's Alghad TV on Sunday, referring to the proposal, according to a translation by MEMRI.

The Jerusalem Post reported that al-Einein, who is an aide to the Palestinian Authority President Mahmoud Abbas, also pointed to Israeli "arrogance" and settlement activity along with the potential US move as provoking Palestinian violence.

"We must prepare for a confrontation with the new US administration, which has clearly and audaciously declared that Israel and its settlements are legitimate and legal," he said.

The Palestinian official declared that Washington and Jerusalem "will bear responsibility for the return of the bloodshed in the Palestinian territories."

The conflict between Israel and Palestine has been in the Western spotlight in recent days after a UN resolution condemning Israel's expansion of settlements. Israel attacked the US for failing to veto the resolution, provoking John Kerry, the US Secretary of State, to give an unusual and long speech during the Christmas holiday period (December 28) criticising Israel and reasserting America's commitment to a two-state solution. This in turn sparked an attack by president-elect Trump, who used Twitter to tell Israel to "stay strong" and hold on until his presidency becomes official later this month. Israel's rightwing Prime Minister Benjamin Netanyahu thanked Trump for his support and "warmth".

In December, momentum appeared to be gathering behind Trump's controversial proposal to move the US embassy to Jerusalem after his spokeswoman said it was a "very big priority".

According to Israel's Channel 2 TV station, officials were actively looking into possible locations for a new US embassy – including the Diplomat Hotel in the Talpiot neighborhood of west Jerusalem, a privately owned building that is home to 500 elderly immigrants from the former Soviet Union.

Also last month, Netanyahu said that such a move would be "great". He said: "Regarding the idea of opening the US Embassy to Jerusalem, I will respond to this in one word: Great."

Kellyanne Conway, a spokeswoman for the President-elect, said in a radio interview that Trump "made it very clear during the campaign" that he wanted to make the move, and that she had "heard him repeat it several times privately, if not publicly".

Trump delighted Netanyahu in September by telling him during a lengthy meeting that if he won the presidential election, the US would "recognise Jerusalem as the undivided capital of the State of Israel".

While Israel considers Jerusalem its "eternal, undivided capital", the Palestinians regard the east of the city – occupied by Israel in the 1967 Six Day War – to be the capital of any future Palestinian state. Trump's plan effectively rules out a two-state solution to which the agreed division of Jerusalem would be key.