CAIRO, May 23 (Xinhua) -- Arab League (AL) has cancelled on Wednesday a memo of understanding with Guatemala over its stand regarding Jerusalem cause, the AL said in a statement.

The AL has notified the Guatemalan side of not proceeding any kind of cooperation after the transfer of its embassy to Jerusalem, the statement said.

"The move came in light of activating the AL's decision to condemn the Central American country's relocation of its embassy and taking the suitable political and economic suitable measures in that regard," the statement highlighted.

Guatemala's transfer of its embassy in Israel from Tal Aviv to Jerusalem is an obvious violation to the international consensus over the legal and historic conditions of the occupied city, which will threaten international peace and security, it added.

The statement reiterated its calls to all the world countries not to take similar steps and to abide by the legitimate rights of the Palestinian people.

On May 14, the United Stated opened its embassy in what Israel claims to be the capital of the Jewish country, Jerusalem.

Paraguay opened its embassy to Israel in Jerusalem Monday, becoming the third country to do so following the U.S. and Guatemala.