The Iranian parliament has recognised Jerusalem as "eternal capital of Palestine" and approved a draft legislation in this regard.
Iran's State TV said some 187 out of 233 lawmakers in attendance voted in favour of the draft on Sunday.
Further discussions on the draft will occur within the upcoming 48 hours before referring the paper to parliament for final approval.
The Iranian step came in response to US President Donald Trump's recent decision to recognise Jerusalem as capital of Israel and to move the American embassy to the holy city.