Mr Netanyahu said the move would honour Mr Trump's recognition of Israeli sovereignty over the Golan in March.
Israel seized the Golan from Syria in 1967 and annexed the territory in 1981. The move has not been recognised internationally.
Syria said Mr Trump's decision was "a blatant attack on its sovereignty".
Mr Netanyahu, who has secured a fifth term in office in the recent Israeli elections, has been on a trip to the region with his family for the week-long Passover holiday.