He says he will advance "a resolution calling for a new community on the Golan Heights named after President Donald J. Trump".
Another person suggested Netanyahu call the town "La Brea", after the famous tar pits in California.
The move by newly elected Netanyahu is to thank Trump for flouting worldwide law and recognising Israeli sovereignty over the lands just before the Israeli elections.
In 2017 Trump also broke decades of USA policy and announced that he recognized Jerusalem as the Israeli capital.
In a press conference at the White House last month to which he invited Netanyahu, Trump signed a proclamation in which the USA officially recognized Israel's sovereignty over the Golan Heights.
Oil prices climb as USA set to end Iran sanction waivers
China opposes Washington's "unilateral sanctions and long-arm jurisdiction", said a foreign ministry spokesman, Geng Shuang. It is meant to further ramp up pressure on Tehran by restraining the revenue it gets from oil exports.
The Jewish settlement may be named Kiryat Trump in honour of the President who made the controversial move to recognise Israel's claim over the Golan Heights.
The city's status is at the heart of the Israeli-Palestinian conflict.
In ultimately fruitless peace talks held by Israel and Syria in the 1990s and 2000s, the return of the Golan was the Assad regime's main demand.
"We won't let Israel become a punching bag for Democrats to score points with their radical base".
The American Israel Public Affairs Committee and an Israeli minister pushed back Tuesday against Sen. Some 20,000 Israeli settlers live in Golan, while about 18,000 Syrians reside in the occupied region. Israel intends to settle the region heavily in the next few decades: By 2048, the state intends to build housing that would accommodate 250,000 Israelis.