The ministry considered the step as "an emphasis by the administration of President Donald Trump to antagonize Palestinian people and undermine any chance for peace on the basis of a two-state solution."
Israeli media reported on Tuesday that the US administration is considering to allow US citizens born in Jerusalem to list "Jerusalem, Israel" on their passports, Xinhua news agency reported.
Israeli websites quoted US Secretary of State Mike Pompeo as saying that "we're constantly evaluating the way we handle what can be listed on passports."
The PA Foreign Ministry statement said "just thinking in this direction is a violation of international law and international legitimacy decisions."
In a controversial move criticized even by US allies, Trump declared Jerusalem al-Quds the capital of Israel in December 2017 and then moved the embassy from Tel Aviv to the city in May last year.