Speaking in the Oval Office with the leaders of both countries, the US President said Serbia had also committed to moving its embassy to Jerusalem. The Trump administration recognized Jerusalem as Israel's capital in late 2017 and moved the USA embassy there in May 2018. The Serbian government has vowed to move their embassy to Jerusalem.
Israel seized control of East Jerusalem in 1967 and later annexed it in moves never recognised by the worldwide community.
A statement from Netanyahu's office said that during a meeting between Trump and Hoti, the president called Netanyahu and congratulated the two leaders on the decision to establish full diplomatic relations.
"Kosovo will become the first majority-Muslim country to open an embassy in Jerusalem", Netanyahu said in a statement. The Palestinians claim east Jerusalem, occupied by Israel in the 1967 Mideast war, as their would-be capital. "As I've said in recent days, the circle of peace and recognition of Israeli is widening and is expected to add additional countries".
As the first direct flight between Israel and the UAE took off at the end of August, Netanyahu hinted at "many more" deals to come between Muslim states and Israel.
The two countries have been at odds since the early 1990s after Kosovo declared independence from Serbia. The deadlock has kept tensions simmering, but the U.S.is hoping that political issues can be set aside to allow economic relations to develop.
Prime Minister Benjamin Netanyahu's press office announced his country's recognition of Kosovo on Friday, making Israel the 98th United Nations member state to recognize the former Serbian province.
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Because what we want to do is we've got to heal. "Not whipping up fear and division - not inciting violence in our streets". He emerged saying Trump's inaction on school aid has left a haphazard response nationally. "Biden will make a local stop".
The talks included representatives of major USA economic aid agencies including the Export-Import Bank, suggesting United States financial support was involved in bringing the two sides together.
The choice of this unusual type of document to be signed by the parties has avoided any implication or interpretation that Serbia has recognized Kosovo.
As the Service for Cooperation with the Media of the President of the Republic announced, Vučić will participate in the talks on economic cooperation between Belgarde and Pristina, organized by the White House. The hosts of that meeting will be Josep Borrell, EU's representative for foreign affairs and security, and Miroslav Lajčák, EU's special representative for the Belgrade-Pristina dialogue.
The EU has mediated the talks between the two former wartime foes for over a decade, and the parallel US effort, although focused on economic development, has not been fully embraced by some EU officials.
Grenell berated reporters for ignoring the significance of the deal with Kosovo and Serbia.
The White House summit was originally scheduled for June, but it was cancelled after Kosovo President Hashim Thaci, who was to lead the Kosovo delegation, was indicted for war crimes by an worldwide court.