Theresa May and Donald Trump have spoken for the first time since a public spat over the US President's controversial Britain First re-tweets.
The leaders "wished each other a very merry Christmas" in a phone call on Tuesday afternoon, according to Downing Street.
They also discussed "different" positions on Mr Trump's decision to move the US embassy in Israel from Tel Aviv to Jerusalem, agreeing the US needed to "bring forward new proposals for peace".
Mrs May previously condemned the move as "wrong", despite the President's promise it would help bring stability to the region.
The call also came hours after Britain joined 13 members of the UN Security Council in rejecting the US decision on Jerusalem. It was vetoed by a single vote from the US.
However, a statement from the White House made no mention of Jerusalem, only referring to the two leaders discussing "the next steps in forging peace in the Middle East."
Both leaders also paved the way for a "swift" post-Brexit trade deal, with Mrs May hailing the "good progress" made in negotiations with the EU.
And they discussed "deep concerns" at the humanitarian situation in Yemen.
But off the official record was any mention of their row over Mr Trump's posts on Twitter of anti-Muslim videos.
He shared three videos to his 43.6 million followers, including unverified footage purporting to show Muslims committing crimes.
The far-right group Britain First that originally posted them has since lost its verified badge on Twitter and been suspended pending an investigation by the tech company.

The President blasted back at Mrs May after her criticism: "Don't focus on me, focus on the destructive Radical Islamic Terrorism that is taking place within the United Kingdom. We are doing just fine!"
Labour leader Jeremy Corbyn has hit out at the PM, saying: "It has taken Theresa May two weeks to contact Trump over his dangerous decision to recognise Jerusalem as Israel's capital, yet she seems to have failed to use the opportunity to call him out for re-tweeting abhorrent Islamophobic material.
"As Prime Minister, May has a responsibility to stand up against hate and for all communities in our country."
Also missing from the readout was talk of Mr Trump's impending visit to the UK.
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The trip has been beset by speculation, after a series of disputes between London and Washington, including over the travel ban on Muslim-majority countries.
Labour MP Paul Flynn said last month Mr Trump should be "charged with racial hatred" if he enters the UK.
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