Recent reports say that he was unhappy with his first waiver issued in June and wants to go ahead and recognize Jerusalem as Israel's capital as early as Wednesday.
On Tuesday, White House officials said US President Donald Trump would announce that the United States recognizes Jerusalem as the capital of Israel on Wednesday and direct the US State Department to begin the process of moving the US embassy from its current location in Tel Aviv to a site in Jerusalem.
Jerusalem remains at the core of the Israel-Palestine conflict, with Palestinians hoping that the city's eastern part - which was occupied by Israel in 1967 - might serve as the capital of a future Palestinian state.
The king "reiterated that such a unsafe step of relocation or recognition of Al-Quds as the capital of Israel would constitute a flagrant provocation of Muslims all over the world, as per its lofty status to them and as it is the cradle of Al-Aqsa Mosque, the first direction they were facing in their daily prayers", the official Saudi Press Agency added.
The Hamas leader also called for strong unity among all Palestinian factions, and "for a unified stance to counter this oppression and aggression".
Advisers to Palestinian Authority President Mahmoud Abbas said the act would destroy peace talks between them and Israel.
In the Saudi version of the call, King Salman told Trump "that any US declaration on the status of Al-Quds before reaching a final settlement would harm peace negotiation process and escalate tension in the region".
Al-Quds and al-Ayyam said the Palestinian cabinet slammed Trump's decision as violating all relevant United Nations resolutions.
According to al-Ayyam, the UN Security Council would meet on Friday over Trump's decision.
Al-Ayyam highlighted a letter that was sent by the heads of churches in Jerusalem to Trump regarding the status of Jerusalem before he took his decision.