Prime Minister Benjamin Netanyahu called the move of the US Embassy from Tel Aviv to Jerusalem a "historic event" on Sunday.
"This week, we're being blessed with a historic event, and that is the decision of the greatest world power—our friend the United States—to move its embassy to Jerusalem," Netanyahu said at a special Cabinet meeting help at the Bible Lands Museum in the capital.
"Later, there will be other embassies (being moved), such as those of Guatemala and Paraguay," the prime minister added.
As Israel marks 51 years to the unification of Jerusalem, Netanyahu went on to say that "Today we're making a series of decisions to build Jerusalem up and develop it; to uncover its past and build its future. I know there are difficulties on the way—they've existed for 70 years—and we will withstand them. Judea will forever sit in Jerusalem for many generations. Happy holiday to Jerusalem."
Jerusalem Affairs Minister Ze'ev Elkin elaborated on the prime minister's statement, saying the government will approve a series of decisions to allocate NIS 2.5 billion to pay for the transfer of foreign embassies to the capital.
"This move joins the transfer of government ministries to Jerusalem, which is historic," he said.
In his remarks, Netanyahu also noted Israeli singer Netta Brazilai's Eurovision victory. "These days, Jerusalem is being blessed with many gifts. We received another one last night—the gift is that the Eurovision will be held in Jerusalem next year," he said.
Israel will hold a reception on Sunday to members of a delegation led by President Donald Trump's daughter Ivanka, his senior adviser and son-in-law Jared Kushner and Secretary of Treasury Steven Mnuchin ahead of the embassy opening ceremony on Monday.
Dozens of foreign diplomats are expected, though many ambassadors of European nations who oppose the move will skip it.
The Associated Press contributed to this report.