Israel has unveiled Trump Heights, a new community named after U.S. President Donald Trump on a contested frontier with Syria.

Israeli Prime Minister Benjamin Netanyahu (2nd-R) and US Ambassador to Israel David Friedman (L) applaud after unveiling the place-name sign for the new settlement of "Ramat Trump", or "Trump Heights" in English, named after the incumbent US President, during an official ceremony in the Israeli-annexed Golan Heights on June 16, 2019.[Photo: AFP/Jalaa MAREY]

The United States recognises Israeli sovereignty over the territory that Israel seized from Syria in the 1967 Middle East war.

"(U.S.) President (Donald) Trump is a great friend of our state, a leader who has done things which were not done previously and should have been done by the power of justice and truth," said Israeli prime minister Benjamin Netanyahu.

The Golan Heights project is designed to cement ties between Israel and the United States.

U.S. ambassador to Israel David Friedman expresses his excitement at Israel's new move.

"I think it's a wonderful first step in the follow-on to his (Trump's) recognition of Israeli sovereignty over the Golan Heights, which I'm very proud of. I think many in the United States think it was a brilliant decision and we're going to give some effect to it and life to it today. So, it's a great afternoon, very exciting," said the U.S. ambassador.

At a special cabinet session, Netanyahu unveiled a sign labeled Trump Heights in English and Hebrew and decorated with the Israeli and U.S. flags.