JERUSALEM, Sept. 4 (Xinhua) -- Israeli Prime Minister Benjamin Netanyahu announced on Friday that Israel is to establish diplomatic relations with Kosovo, a predominantly Muslim nation, while Serbia will move its embassy to Jerusalem.

The agreements were reached with U.S. mediation, as an announcement was made by U.S. President Donald Trump at the White House alongside Kosovo and Serbia leaders.

The United States moved its embassy to Jerusalem over two years ago after a controversial decision to recognize the city as Israel's capital. The majority of the international community does not recognize Israel's sovereignty over Jerusalem. Palestinians see the eastern part of the city as the capital of their future state.

"We will continue in our efforts so that more European countries will move their embassies to Jerusalem," said Netanyahu in a statement.

The announcement comes two weeks after Israel and the United Arab Emirates (UAE) reached an agreement to normalize ties.