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Yemen's Houthi rebels have threatened to attack a planned futuristic mega-city in Saudi Arabia amid stalled negotiations.

The threat by the Iran-backed group's supreme leader, Abdul Malik Al-Houthi, to attack the NEOM project was broadcast by the Houthi-run Al-Masirah television station.

Al-Houthi criticised the Saudi-led coalition that intervened in Yemen's war in 2015 in support of the country's internationally recognised government.

"The coalition of aggression insists on continuing to besiege us and occupy large parts of our country and to dismantle it, and we must confront that as a realistic necessity," he said.

"In the phase that witnesses de-escalation and provides space for Omani mediation, we are not unaware of the enemies' efforts to achieve their devilish goals.

"If positive developments do not occur and the oppressive measures are not addressed, and if the Saudis don't abandon their aggressive approach, our stance will be firm and strict."

The war in Yemen began in 2014 after the Houthis took the capital of Sanaa.

Both the Saudi-led coalition and Houthis have been accused of committing grave abuses by rights groups.

The years-long fighting has resulted in the death of hundreds of thousands of civilians and one of the world's biggest humanitarian crises.

While there has recently been hope of an end to the conflict, including after a prisoner swap between the Houthis and Yemeni government in April and the restoration of diplomatic ties between Iran and Saudi Arabia, no final peace agreement has been reached.