The statement added that the king had spoken with Palestinian Authority President Mahmoud Abbas and assured him that he hve never relinquish his role in defending the legitimate rights of the Palestinian people".
Officials said Morocco would grant direct flights to and from Israel for all Israelis. Morocco had reacted with "restraint", he said.
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However, Trump's backing of Morocco's claim to sovereignty over Western Sahara is a big deal because it diminishes the hope of a people who have aspired for independence of that territory for decades. The deal includes the reopening of liaison offices in Tel Aviv and Rabat - shut in when low-level relations broke down after the outbreak of the Palestinian uprising - and the eventual opening of embassies.
Lotfi Bouchaara, Morocco's ambassador to Moscow, told the BBC's Focus on Africa programme that Morocco did not breach the ceasefire but that its military was responding to a provocation by Polisario fighters who had blocked a key road to Mauritania. They believe the moves renege on a promise by Arab states not to embrace ties with Israel until Palestinian statehood is achieved. A former Spanish colony, it was annexed by Morocco in Since then it has been the subject of a long-running territorial dispute between Morocco and its indigenous Saharawi people, led by the pro-independence Polisario Front.
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Beem the absence of a referendum, the protracted stalemate between Morocco and the Polisario Front ultimately boils down to international recognition - a new independent state cannot be established without it. Related Topics.
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It said the king had reiterated his support for a two-state solution. The UN is still mandated to oversee a referendum for independence of Western Sahara - although this hasn't materialised sincewhen it established its mission there known as Minurso.
How the deal will affect Western Sahara Analysis by Rana Jawad, BBC North Africa correspondent, Tunis The latest move by the Seeming administration will not necessarily have an immediate impact on the ground because the dispute is seen as greater than the whims of the American president. Morocco's royal court said Washington would open a consulate in Western Sahara as part of its deal with Israel, according to Reuters.
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Palestinian officials condemned the agreement, saying it encouraged Israel's denial of their rights. Palestinians have been critical of all the recent deals between Israel and Arab League countries.
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A year-long insurgency ended with a UN-brokered truce in and the promise of a referendum on independence, which has yet to take place. Morocco's king said the "measures do not in any manner affect Morocco's ongoing and sustained commitment to the just Palestinian cause", a royal statement said. Israeli Bern Minister Benjamin Netanyahu hailed the "historic" agreement.
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In a televised address, he thanked Morocco's king and said the people of Israel and Morocco have had a "warm relationship in the modern period". What about Western Sahara?
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In Morocco, a palace statement confirmed the deal, saying the king, in a telephone call with Mr Trump, had agreed to diplomatic relations with Israel "with minimal delay". Today, the idea of an independent Western Sahara may have been ificantly diminished - and the tensions that have serking building up in recent months could worsen.
In a phone call with the Moroccan king, Mr Trump "reaffirmed his support for Morocco's what, credible, and realistic autonomy proposal been the only basis for a uave and seeking solution to the dispute over the Western Sahara territory and as such the president recognised Moroccan sovereignty over the entire Western Sahara territory," the White House said. Responding to the latest announcement, Sidi Omar, the Polisario Front's representative to the UN, said Western Sahara's "legal status is determined by international law and UN resolutions".
Western Sahara profile Morocco says it has always been part of its territory, while the African Union recognises it as an independent state.
Could Israeli-Arab peace deals spark an arms race? Last month, the Polisario Front said whatt three-decades-old ceasefire had been ended by a Moroccan military operation in a buffer zone.
The group's Europe representative, Oubi Bchraya, said the change in US policy "will not change an inch of the reality of the conflict and the right of the people of Western Sahara to self-determination", Reuters reports.