However, Mr Trump blamed former president Mr Obama's administration for selling "perhaps the best located and finest embassy in London for peanuts".
"Bad deal. Wanted me to cut ribbon-NO!" the USA president added.
While Trump had claimed that he called off the visit because he didn't want to open the new USA embassy in south London and termed the decision to move the building from Mayfair to Vauxhall as a "bad deal".
Some U.K. lawmakers had said Trump was not welcome in Britain after he re-tweeted videos from a far-right British group and criticized London Mayor Sadiq Khan following a terror attack previous year.
The American flag was this month removed from the USA embassy in Grosvenor Square as part of the move to a location on the South Bank in a $1 billion construction project.
In an article in London's Evening Standard newspaper yesterdayy, USA ambassador Woody Johnson said Washington was "re-investing in the special relationship".
A Trump visit has been on the cards since British Prime Minister Theresa May visited the United States a few days after Trump's inauguration a year ago.
Though Mrs May was the first world leader to visit the President in the White House after his inauguration last January, it's surprising - given the importance of the so-called "special relationship" between the two countries - that he's not yet travelled to these shores.
"I think we have to welcome the American President to Britain", Johnson said.
But a full-blown state visit replete with golden carriages and pomp has been deferred amid the threat of huge anti-Trump protests.
White House hails drop in Chinese trade with North Korea
He also said China and Russian Federation , which have not been invited, will be briefed on the discussions after the meeting. However, both North Korea and the United States have shown a similar stance towards the plan, not responding to it.
Trump tweeted overnight that he would not attend the ceremony, initially scheduled for next month. She suggested a formal visit could still, but offered no details.
A spokesman for May's Downing Street office said the invitation for the state visit "has been extended and accepted".
In the meantime, the relationship between May and Trump has come under strain.
Although the decision was not made under Obama, Trump is correct to say that the sale of the embassy was completed during the Obama administration.
The exchange prompted further calls to dump the visit.
More than a year into his presidency, Trump has yet to visit London, with many Britons vowing to protest against a man they see as crude, volatile and opposed to their values on a range of issues.
He took to Twitter to explain why he called off the visit, which had sparked fears of mass protests and would have been his first to the United Kingdom as President.
British Foreign Secretary Boris Johnson said opponents such as Khan were putting the relationship with the United States, the biggest investor in Britain, at risk.
The embassy was also a focus for British discontent with USA policy. "It seems he's finally got that message", tweeted Mayor of London Sadiq Khan.
"We will not allow US-UK relations to be endangered by some puffed-up, pompous popinjay in City Hall", Johnson tweeted.