Saudi Arabia says it is halting deals worth $US4 billion ($A5.59 billion) aimed at equipping and supporting Lebanese security forces in retaliation for the country siding with Iran.
The surprise announcement, carried by the state-run Saudi Press Agency, comes as deeply divided Lebanon struggles to handle the fall-out from the conflict in neighbouring Syria.
The Lebanese prime minister said his government "deeply regretted" the Saudi decision, adding that this is a sovereign matter for the kingdom.
"We did not want the matter to reach what contradicts that nature of historical relations between Lebanon and the country of the two shrines (Saudi Arabia)," read a statement released by Prime Minister Tammam Salam's office. "We are keen on keeping the relations brotherly and friendly."
One deal involves a four-year, $US3 billion Saudi pledge to buy French arms for the Lebanese military, which already has provided the Mediterranean country with modern anti-tank guided Milan missiles last year.
The other involves a $US1 billion support deal for the Lebanese police.
The decision came after Lebanese Foreign Minister Gibran Bassil declined to support Saudi resolutions against Iran during two meetings of Arab and Muslim foreign ministers.
Bassil is the president of the Christian Free Patriotic Movement, which is one of the strongest allies of the Iran-backed militant Hezbollah group in Lebanon.
Saudi Arabia long has been suspicious of Iran, which also supports Syria's embattled President Bashar al-Assad.