He said no move would be made on settlements in other areas of the West Bank until Donald Trump’s peace plan is unveiled.
“Out of respect for President Trump and out of great faith in our friendship, I will wait with applying sovereignty until release of the president's political plan,” Mr Netanyahu said, according to Haaretz.
But the Jordan Valley was “one place where it is possible to apply Israeli sovereignty immediately after the election,” he said, adding: “If I receive a clear mandate to do so from you, the citizens of Israel.”
The White House said US policy had not changed as a result of Mr Netanyahu’s announcement.
“We will release our Vision for Peace after the Israeli election and work to determine the best path forward to bring long sought security, opportunity and stability to the region,” an official told Haaretz.
Palestinian Prime Minister Mohammad Shtayyeh criticises the announcement, telling Reuters that Mr Netanyahu is “a prime destroyer of the peace process.”