63-year-old Najib's ruling coalition of Barisan Nasional Party's mandate ends in June 2018.
Najib has been at the helm despite allegations of financial scandal involving him and the state fund 1 MDB.
He has denied any wrong doing in the scandal.
Although Najib did not specify the date of the elections, the prime minister said the polls would be the determiner whether the UMNO-party led government would remain in power or people would choose a new government led by opposition DAP.
Emphasising further on his statement, Najib noted that the UMNO General Assembly 2016 was for all delegates to receive messages and advices as preparation for next polls.
"If only the Malays and the Bumiputra know the nightmare that will befall them, I am confident that they will hold firmly to UMNO as the only party that can defend their ancestry's rights and fight for their future," he said in his fiery speech to over 2,000 delegates.
Najib, keeping a firmer grip of the party he has led since 2009, was in much better spirit after a tumultuous session last year following which he sacked his deputy and a party vice-president resigned.
"God willing, we will fight until the death and until the last drop of blood," Najib told delegates.
He attacked former premier and staunch critic Dr Mahathir Mohamad, calling the latter's alliance with the opposition DAP, PKR, Parti Amanah Negara, Bersih as "ultimate betrayal".
"This is one form of ultimate betrayal to UMNO, the race and the nation," he said.
"I ask you, please everyone do not politicise this issue because it is a private member's motion, which will eventually be taken over by the Federal Government.
"To the non-Muslims, worry not, because you will not be subjected to these laws, and the Government is studying the fine prints of the proposed amendments to ensure that there are no elements of dual punishment," he said.
Najib, who is Barisan chairman, said there is no other Government like Barisan which has managed the economy well.
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