The proposal has infuriated many of Israel's Arab citizens, who view it as a form of forced transfer.
Trump proposed the recognition of Israeli sovereignty over West Bank settlements, creating Israeli enclave communities in the heart of the West Bank while promising the possibility of a future independent Palestinian state under certain conditions.
The peace plan would leave most of annexed east Jerusalem, including its Old City and holy sites, under Israeli control while allowing the Palestinians to establish a capital on the outskirts of the city outside Israel's separation barrier.
The church leaders said Trump's plan endorses "almost all" the demands and the political agenda of the Israelis while ignoring the demands of the Palestinian side.
Thousands of Palestinians protested in Gaza City ahead of the announcement, burning pictures of Trump and Netanyahu and raising a banner reading “Palestine is not for sale.”
The Gaza Strip has been under an air, land and sea blockade imposed by Israel and Egypt in 2007.