Hezbollah chief Hassan Nasrallah said Saturday his Lebanese movement's response to a recent alleged Israeli drone attack on the group's Beirut stronghold had been "decided."

"The need for a response is decided," he said during a televised speech ahead of a Shiite religious holiday, adding it was about "establishing the rules of engagement and... the logic of protection for the country."

Israel "must pay a price," he said.

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Israeli PM tells Nasrallah to 'calm down' after drone incident

The threat comes as tensions soar between Lebanon and Israel after an alleged Israeli attack on southern Beirut last Sunday.

"Netanyahu is trying to convince his people and the international community that the resistance has factories of precise rockets in Lebanon for him to wage an attack against our country," Nasrallah said.

In a rare incident on Wednesday, the Lebanese army opened fire on Israeli drones that had violated Lebanon's southern airspace, forcing the aircraft to return back across the border.

"We have enough precise rockets in Lebanon but we do not have factories yet ... whenever we build such factories, I would be happy to admit it with pride," he said.

Nasrallah noted that Hezbollah does not own such factories.

"Israel owns nuclear and chemical weapons which does not give it the right to complain about our defense system," he said.

Israel and Hezbollah have fought several wars, the last of which was a 33-day conflict in 2006, which killed 1,200 people in Lebanon, mostly civilians, and 160 Israelis, mostly soldiers.

(With input from Xinhua, AFP)