The porn star has claimed she had an affair with the property mogul in 2006, and has sued to invalidate a confidentiality agreement she signed days before the 2016 presidential election, which prevents her from discussing it.
Ms Daniels, whose real name is Stephanie Clifford, is also suing Mr Trump and his personal attorney, Michael Cohen, alleging defamation.
West Hollywood officials said Ms Daniels had “proven herself to be a profile in courage by speaking truth to power even under threats to her safety and extreme intimidation,” ABC7 reports.
The city also plans to proclaim 23 May “Stormy Daniels Day” in her honour.
“[The] Trump administration has been a direct threat to the people of the city of West Hollywood – our LGBTQ+ community, our immigrant community, women here in this community – so Stormy Daniels has really showed up as the woman to save the Republic,” the city’s mayor, John Duran said.