The visit comes days after PSD party chief Liviu Dragnea kicked off a political row in Romania by announcing the government's "decision" to move the country's embassy from Tel Aviv to Al-Quds.
In Israel, apart from Netanyahu, Dancila will hold a series of meetings with other state officials, the president Reuven Rivlin, opposition leader Isaac Herzog and Jerusalem's Greek-Orthodox patriarch Theophilos III.
With the declared intention of moving their embassy, the Czech Republic has joined the ranks of the United States and Guatemala who will be moving their embassies next month, and Romania who has declared intentions to move theirs as well.
"I thank my good friend, Czech President Miloš Zeman, for the important declaration that the Czech embassy will move to Jerusalem". In February, the USA administration announced that it would open its Jerusalem embassy in May 2018 to coincide with the 70th anniversary of Israel's independence.
He said he proposed that the Czech embassy should move from Tel Aviv to Jerusalem already four years ago.
Now in Prague, Israeli Deputy Foreign Affairs Minister Tzipi Hotovely also welcomed the decision.
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The statement recalls that the Czech government previous year, shortly after the USA move, recognized the city's Western part as Israel's capital.
In this April 12, 2018 photo Czech Republic's acting Prime Minister Andrej Babis speaks during a news conference at the government's headquarters in Prague, Czech Republic.
Opened in the early 1990s, the Czech honorary consulate in Jerusalem was closed in 2016 due to the death of the honorary consul, spokeswoman Michaela Lagronova told AFP. "This step in no way prejudges the final agreement concerning Jerusalem, the same way as it is not being prejudged by diplomatic representations of several European countries that are seated in East Jerusalem". He added that he hopes that the move will take place in the near future.
"The Czech Republic and the State of Israel share a long history of friendly relations", the statement continued.
Prime Minister Benjamin Netanyahu said he hoped they would jointly open the new embassy in Jerusalem at the end of this year. PM Netanyahu's statement on Wednesday welcomed the "Romanian government's approval of a draft decision on initiating the transfer of the Romanian Embassy to Jerusalem".
Israeli Ambassador in Prague Daniel Meron thanked Zeman for his friendship.