At the start of the weekly cabinet meeting Sunday, Netanyahu said he had selected the site for the new settlement named after the US pro-Israeli leader.
"I promised that we would establish a community named after President Trump," he said. "I would like to inform you that we have already selected a site in the Golan Heights where this new community will be established, and we have started the process."
The Israeli premier said he would submit the new plan for cabinet approval after taking office again in the wake of last month's snap general election.
In a highly provocative move on March 25, the US president signed a proclamation recognizing Israel's "sovereignty" over the Syrian territory.
Damascus strongly condemned the move and called it a "blatant attack on the sovereignty and territorial integrity" of Syria.
In 1967, Israel waged a full-scale war on Arab territories, during which it occupied a large swathe of Golan and annexed it in 1981, a move condemned by the international community. Syria has repeatedly reaffirmed its sovereignty over the Heights, saying the territory must be completely restored to its control.
Trump’s favor to Israelis over Golan followed his recognition of Jerusalem al-Quds as the capital of the Israeli regime.
The US has relocated its embassy from Tel Aviv to Jerusalem al-Quds, which Palestinians consider the capital city of their future state.
Israel reportedly plans to also name a train station near the Western Wall of Jerusalem al-Quds after Trump.
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