Praising Trump's "critical approach" on the aid issue, Netanyahu steered clear of advocating a suspension of funding for the Palestinians.
The King reiterated that Jordan will exert the greatest efforts to uphold its religious and historic responsibility to protect the holy places. "This absurd situation must be ended", Netanyahu said.
The report was based on audio recordings obtained by the Times, in which Ashraf al-Kholi, the Intelligence officer, can be heard telling the hosts that Egypt, like its "Arab brothers, are denouncing this matter", but that "after that, this thing will become a reality".
UNRWA, which is suffering from shortage in budget, is appealing for $400 million in aid to meet humanitarian demands by Palestinian refugees, whose number has reached over 5 million since 1948, particularly in conflict areas such as Gaza and Syria.
Netanyahu said that UNRWA was set up separately for Palestinian refugees 70 years ago, while another body - the U.N. High Commissioner for Refugees (UNHCR) - deals with the rest of the world's refugees.
President Donald Trump's decision last month to relocate the USA embassy in Israel sparked widespread protests in cities across the Middle East. The Palestinians have strongly protested the decision, and Trump has threatened to take action against those who challenged him.
The U.S. gives a little more than $300 million a year to the agency, accounting for its primary source of funding.
While Israel took over East Jerusalem from Jordan in the 1967 war and declared the whole city as its eternal indivisible capital in 1980, it has not been recognized by the worldwide community.
The United States is the largest donor to UNRWA, with a pledge of almost $470 million as of 2016, according to the organisation's website. Critics have warned that thousands of children could turn to Hamas schools, for example, if UNRWA schools are forced to close.
The U.S., by far the biggest contributor to the UN Relief and Works Agency, or UNRWA, had been expected to deliver the payment on January 2.
The UN agency, founded in 1949 to aid Palestinian refugees, is a main provider of educational and health services in the Gaza Strip. If they want to move beyond empty bluster toward a fair and durable solution, they need to stop pandering for domestic audiences and get serious about bringing the parties back to the negotiating table for tough talks on thorny issues.
"This needs to be resolved by the parties to the conflict in the context of peace talks, based on United Nations resolutions and global law".