Palestinian president Mahmud Abbas labelled the US ambassador to Israel David Friedman a "son of a dog" on Monday during an attack on Donald Trump's policies.

The scathing comments come with US President Trump still expected to launch a plan for peace between Israel and the Palestinians despite Abbas boycotting his administration over his controversial recognition of Jerusalem as Israel's capital.

"The US ambassador in Tel Aviv is a settler and a son of a dog," Abbas said in comments to Palestinian leaders in Ramallah.

The White House later Monday slammed Abbas's "insults", saying he must choose between hate and peace.

Relations between Abbas's government and Trump's administration have broken down since the White House recognised Jerusalem as Israel's capital in December. The Palestinians also see the disputed city as the capital of their future state and have refused to meet with Trump's envoys since.

Separately during the speech, Abbas accused rival Palestinian faction Hamas of a bomb attack targeting his prime minister Rami Hamdallah last week and threatened fresh sanctions against the Islamist movement.