"I call on everyone to take part in a mass popular demonstration to protest and denounce this American aggression and this unjust... decision," Hassan Nasrallah said in a televised address.
The demonstration is to be held on Monday in Beirut's southern suburbs, a bastion of Nasrallah's Shiite movement.
"I am calling on men, women, young and old, the southern suburbs, Beirut and all those who wish to join in from across Lebanon," Nasrallah said, also inviting residents of Lebanon's 12 Palestinian refugee camps.
Most of the international community does not recognise Jerusalem as Israel's capital, insisting the issue can only be resolved through negotiations with the Palestinians.