"The occupied territories are awaiting their first visit by the crusader Bush and the mujahideen are also waiting for him," said Gadahn, a California native.
He said Bush should be welcomed to the region "with bombs and traps," ABC News reported Sunday.
Gadahn is featured on the latest al-Qaida propaganda video to be posted online by the group's media wing, As Sahab. In the video, Gadahn tore up his U.S. passport to protest the imprisonment of fellow al-Qaida followers Abu Zubaydah, John Walker Lindh and Sheikh Omar Abdul Rahman.
On the tape, Gadahn made reference to November's U.S.-led Middle East peace conference, saying it was a gathering of Bush's "loyal puppets."
He also said the United States has been "unmistakably defeated" in Iraq in Afghanistan.
"They're about to hand the whole mess over to local proxies who, if they haven't already, shall soon rue the day they sold their souls and religion to the American devil," Gadahn said.
Gadahn, who left Orange County, Calif., almost a decade ago for Pakistan, has been a regular feature in al-Qaida videos. He is under federal indictment for treason and believed to be hiding in Pakistan.