Yahoo TV

The agreement was sealed in a phone call on Thursday between Trump, Israeli Prime Minister Benjamin Netanyahu and Abu Dhabi's Crown Prince Sheikh Mohammed Bin Zayed.

In the White House Oval Office, Trump said discussions between the two leaders had sometimes been tense. He said similar deals are being discussed with other countries in the region. A signing ceremony including delegations from Israel and the United Arab Emirates will be held at the White House in the coming weeks, Trump added.

"Everybody said this would be impossible," Trump said. "After 49 years, Israel and the United Arab Emirates will fully normalize their diplomatic relations. They exchange embassies and ambassadors and begin cooperation across the border."

The U.S. officials described the agreement, to be known as the Abraham Accords, as the first of its kind since Israel and Jordan signed a peace treaty in 1994. It also gives Trump a foreign policy success as he seeks re-election on Nov. 3.