Israel's News 10 said Saudi Arabia and Egypt gave US President Donald Trump the go ahead to recognise Jerusalem as the capital of Israel and move the US embassy from Tel Aviv to the occupied city.
The channel said the Arab parties' reactions and condemnations are not genuine and are misleading.
Israeli journalist and head of the Arab desk at the news channel, Zvi Yehezkeli stressed that the announcement could not have been made without coordination between Trump and his regional allies.
"I am not sure about the Arab countries' reactions to this resolution," Yehezkeli said, adding that the responses issued so far were not serious.
On Wednesday, the US President Donald Trump announced his decision to formally recognise Jerusalem as Israel's new capital adding that the American embassy would be moved from Tel Aviv to Jerusalem.
World leaders, from Europe to the Middle East to Australia, slammed the decision as a "unilateral and outside the vision of a negotiated peace between Israelis and Palestinians," warning of "heightened tensions or even violence across the Middle East."