US President Donald Trump has shelved plans to visit London, saying he will not cut the ribbon on a new US embassy in the south of the city as it was a "bad deal" made under former president Barack Obama.

The US President tweeted: "Reason I canceled my trip to London is that I am not a big fan of the Obama Administration having sold perhaps the best located and finest embassy in London for 'peanuts,' only to build a new one in an off location for 1.2 billion dollars. Bad deal. Wanted me to cut ribbon-NO."