It came just two days after the release of a new audiotape recording of Al-Qaeda’s founder, Osama bin Laden, in which he accused the West of a crusade-like war against Islam.
In the video message the man identified as Zarqawi warned "America will be chased out of the Land of Two Rivers (Iraq) defeated and humiliated".
Zarqawi also said Muslim holy warriors were standing firm and that he would carry on his fight against the Americans across the Middle East.
"We are fighting in Iraq while our eyes are set on Jerusalem, which will not survive except through a Koran that guides and a sword that makes justice," he said.
In the well-produced 35-minute video, America's most wanted man in Iraq pointed to more attacks: "What is coming is more painful."
Unity government
Zarqawi, who is blamed for numerous large-scale attacks during Iraq’s insurgency, has taken a low profile in recent months.
But the Jordanian-born militant said in the video message that it was filmed recently on April 21. In the past he has only made statements through audiotapes posted on the web.
In Jordan, Zarqawi has been sentenced to death three times for the murder of a US diplomat in 2002 and two conspiracy plots. He has also claimed several attacks on the country, including hotel suicide bombings in November that killed 60 people.
The release of this message coincides with efforts by the Shiite politician and prime minister designate, Jawad al-Maliki to quickly form a national unity government in Iraq and end the country's violence.
Zarqawi, however, said the formation of a new government is an attempt to help the US get out of the dilemma it faces in the strife-torn country.
"This democratic play which you brought to Iraq after you promised people freedom and economic stability has gone with the wind," he said.
Blunt warning
Washington and many others see a coalition grouping majority Shi'ite Muslims, Sunni Arabs and Kurds as the only way to end the insurgency and stem sectarian bloodshed.
The message also issued a blunt warning to the people of Iraq.
"Beware those of you who join these collaborator agencies -- the (Iraqi) army and police. By God, all they will get from us is a sharp sword, and we will have ... battles that will turn children's hair white," he said.
Some political leaders have publicly written off Zarqawi as a spent force however western intelligence sources and most analysts have said he remains powerful and has simply switched his sights from the US military to Iraqi soldiers and police.