"The so-called constitutional declaration is a coup against constitutional legitimacy and an attempt to forcibly impose the will of the Houthi group on the people of Yemen," al-Arabi said.
He warned in a statement against the collapse of the political process in Yemen and the emergence of rifts and violence, if Houthis maintained what he described as their "escalation."
Al-Arabi also called for the release of Yemeni President Abd Rabbuh Mansour Hadi, Prime Minister Khaled Bahah and other senior Yemeni officials who are rumored to be under house arrest by the Houthis.
Yemen's Houthis emerged as a formidable political and military force in Yemen after assuming control of capital Sanaa in September of 2014 before moving on to establish control over other parts of the country.
On Friday, the Houthi group issued what they called a "constitutional declaration", dissolving parliament and establishing a 551-member "transitional council."
According to the declaration, pro-Houthi "revolutionary committees" will form a transitional council to replace the dissolved parliament.
The transitional council will then elect a five-member presidential council tasked with running the nation's affairs for a two-year transitional period and drawing up a government of "technocrats."
The declaration was, however, rejected by most of Yemen's political forces and neighboring countries and described as a "coup" against the country's constitutional legitimacy.
Fractious Yemen has remained in the throes of turmoil since autocratic President Ali Abdullah Saleh stepped down in 2012 following a months-long popular uprising against his 33-year rule.