According to Barkat, the ceremony will occur in the presence of Trump administration officials and the square will be named "United States Square in honor of President Donald Trump."
"President Trump has recognized Jerusalem as the capital of the Jewish people," Barkat tweeted Tuesday.
"To show our love and respect for POTUS and the American people, who always stand by the side of Israel and Jerusalem, we will name a square next to the new US Embassy in honor of the president," Barkat added.
Barkat's statement comes after Israeli Construction Minister Yoav Gallant announced last month that he was considering naming an area in Jerusalem after Trump that contains several foreign embassies.
On Monday, the US Embassy in Tel Aviv also changed its Twitter handle to @usembassyjlm.
The US embassy will be relocated from Tel Aviv to Jerusalem on May 14, which commemorates Israel's 70th anniversary of its independence.
Trump's announcement in early December that the US considers Jerusalem Israel's capital and would move its embassy there was met with widespread indignation in the region and around the world, as Palestinians have long insisted that Jerusalem is an Arab city and must be the capital of a future Palestinian state.
In a United Nations General Assembly vote in December, 128 countries denounced Trump's recognition of Jerusalem as Israel's capital.