Sharif's comments come a day after the supreme court struck down two judicial appointments made by Zardari that went against the recommendations of the fiercely independent Chief Justice Iftikhar Chaudhry.
The apex court's move has triggered fears that the Pakistan People's Party and the judiciary could be headed for a showdown.
Criticising the government's actions, Sharif said Zardari should withdraw the notifications for the judicial appointments.
He said Zardari's actions were reminiscent of the emergency imposed by former military ruler Musharraf in November 2007.
"The dictator of that time had attacked the judiciary and yesterday the presidency tried to exceed all limits and impose its will on the judiciary," he said.
"I would have never thought it possible that Zardari would pose the danger he does to democracy today. If there is any danger to democracy, it is from these actions by Zardari. In my view, Zardari is the biggest threat to democracy today," Sharif said in his most scathing criticism of the president to date.
Sharif said the government's actions since the supreme court annulled the National Reconciliation Ordinance - a graft amnesty that benefited Zardari - reveal that it wants to "cover up" its corruption by targeting the judiciary.
Two months after the apex court gave its judgement on the NRO, the government continued to openly flout it, he said.
"Treating the independent judiciary in this manner is tantamount to playing around with the people's desires," Sharif said, adding that the PML-N will stop the president and the government from taking any unconstitutional steps.
He also said that the beneficiaries of the NRO must resign from public office and appear in court to face graft charges against them.
The president must implement the apex court's decision on NRO or the PML-N "will decide its future course of action", he said.
Sharif further said that the government must adhere to all decisions made by the supreme court about the appointment of judges.
The PPP and PML-N had joined hands following the general election in 2008 to form a coalition government at the centre.
They parted ways within months and the PML-N blamed Zardari for reneging on several promises.
In March last year, the PPP-led government was forced to restore judges sacked by Musharraf during the 2007 emergency after the PML-N and the lawyers' movement organised country-wide protests.
Since then, the PPP has made several efforts to woo the PML-N but it has been consistently rebuffed.
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