The Yemeni government, which has been staying in and acting from Riyadh for months, is expected to reveal in coming days an initiative for resuming the political process in order to end the months-long armed conflict.
The initiative will be based on the UN Security Council's resolution No 2216, the Alkhaleej Affairs online newspaper said.
The resolution called on the Houthis, who ousted the government in late 2014, to cede power, return weapons and evacuate cities.
The statement, which coincided with ongoing battles in several cities, came days after UN sponsored talks on Yemen that were attended by the Houthis in Oman.
It was made at the meeting of the government chaired by president Abd Rabbuh Mansour Hadi in Riyadh on Thursday. At the meeting, the government stressed the importance of including the popular resistance fighters in the Yemeni armed and security forces and urged the Houthi militants to release all political prisoners, the paper said.
It said it will form committees on rebuilding the cities retaken from the Houthi militants, economy recovery and political issues, it added.
"All Yemeni governorates will be liberated from the Houthis so that the suffering of the people and bloodshed end," Hadi was quoted as saying.
Lately, reports said Yemen needs billions of US dollars to rebuild cities including Aden which the government is seeking to declare as the new capital.
The government forces with support from the Saudi-led coalition and the popular resistance have regained control of four southern cities after months of deadly battles with the Houthis.
The ouster of the UN-backed government sparked a civil war early this year and, later in March, the Saudi-led military intervention.
It marked an end to the three-year political process which had been sponsored by the UN in accordance with a GCC-drafted power transfer initiative.