DAMASCUS - Despite the tricky security situation on ground with urban fights raging on between armed opposition and government troops in key cities, the Syrian administration on Monday responded defiantly to the West and the Arabs alike, saying it would use its chemical arsenal only in case of foreign aggression and slamming as "flagrant interference" the Arab League calls for President Bashar al-Assad to step down.

Urban fights have started in the capital Damascus last week and recently jumped to the northern province of Aleppo, as part of the armed rebels' escalation in both key cities of the country in a bid to erode the tight grip of the Syrian regime on those cities.

Hundreds have been reported killed or rendered homeless by the ongoing clashes.

The escalation of violence and reports of foreign fighters infiltrating the country with affiliation to extremist groups, mainly al-Qaida, have stoked fears among the United States and its main ally Israel in the region about the destiny of the Syrian chemical arsenal if the Damascus regime is toppled.

The US and Israel have expressed fears about the possibility that the chemical weapons might end up in the hands of al-Qaida or the Lebanese Hezbollah.

Media reports further claimed that Israel is preparing a plan to militarily intervene to destroy those warheads before they fall in the wrong hands.

The New York Times has recently said that "the Obama administration has for now abandoned efforts for a diplomatic settlement to the conflict in Syria, and instead it is increasing aid to the rebels and redoubling efforts to rally a coalition of like-minded countries to forcibly bring down the government of President Bashar al-Assad."

The paper said that "US administration officials have been in talks with officials in Turkey and Israel over how to manage a Syrian government collapse."

"White House is now holding daily high-level meetings to discuss a broad range of contingency plans including Syria's vast chemical weapons arsenal," the report said, adding that "the administration has had regular talks with the Israelis about how Israel might move to destroy Syrian weapons facilities."

The US announced Sunday that it would "hold accountable" any Syrian official involved in the release or use of the country's chemical weapons.

Meanwhile, Syrian Foreign Ministry Spokesman Jihad Makdissi vehemently stressed on Monday that the Syrian chemical or germ weapons would never be used in any domestic fight or against Syrian people, "no matter how this crisis evolves." However, Makdissi stated that the weapons will only be used in case of foreign aggression.

"Chemical weapons in Syria are stored in their places and are monitored and guarded by the Syrian army, these weapons are meant to be used only and strictly during the event of external aggression against Syria," Makdissi told a press conference Monday.

He stressed that "these weapons would not be used, under any circumstance, in any internal rift and regardless of the developments of this crisis."

Meanwhile, he charged that the armed opposition fighters on ground have been provided with bombs that contain chemical substances that would be used on some villages and later accuse the Syrian army of using it.

"There is a media political campaign led by Washington and its tools but we are in a state of self-defense," he said.

He said the Doha statement that called on Syrian President Bashar al-Assad to step down is a "flagrant intervention" in Syria's affairs.

"The Syrian people are the sole decision maker," he said, adding that if the Arab countries are keen about stopping bloodshed in Syria, they would have stopped their media provocation.

The Arab League on Monday urged President Assad to step down and promised a "safe exit" for him and his family if he agrees to give up power.

The AL also urged the United Nations to hold an emergency meeting on Syria to discuss cutting diplomatic ties with the Arab country.

"There is agreement on the need for the rapid resignation of President Bashar al-Assad," Qatar's Prime Minister Sheikh Hamad bin Khalifa Al-Thani told reporters after the AL meeting.

The AL also called on the rebels Free Syrian Army and the broad western-backed opposition to form a transitional government of national unity along with the "de facto national authority", without spelling details on the nature of the authority.

Media and intelligence sources indicated that Qatar and Saudi Arabia have been rendering financial and arm supply to the armed rebels on ground. Syria has for long accused the Gulf States of having a hand in worsening the situation in Syria. ?

The New York Times cited what it called as US "administration officials" as insisting that they will not provide arms to the rebel forces.

The paper said "Turkey, Saudi Arabia and Qatar are already financing those efforts."