Hezbollah calls the decision "a great sin" and says it will ignore it.
"It serves Israel's interests fully and leaves Lebanon exposed to the Israeli enemy without any deterrent means," the militia says in a statement.
Hezbollah also reiterated its demand that Israel must cease its attacks in Lebanon before a new defense strategy can be discussed.
It was at a cabinet meeting on Tuesday that the government decided to instruct the Lebanese army to draw up a plan to limit arms possession to the country's army, security forces and other government forces. The plan is to be presented to the cabinet at the end of August for "discussion and decision" and is to be implemented before the end of the year.
The government says the decision is based on the ceasefire agreement at the end of November last year.
