The Brotherhood, the largest and most prominent Islamist-political organisations in Egypt, was declared a terrorist group by the military-backed regime in Cairo.
"The prime minister has commissioned an internal government review into the philosophy and activities of the Muslim Brotherhood and the government's policy towards the organisation," a Downing Street spokesperson said.
Recent media reports have suggested that members of the Brotherhood have moved to London to escape the military crackdown in Egypt.
The report said MI6, Britain's overseas intelligence agency, would examine claims that the Brotherhood was behind the bus attack in Egypt. MI5 will assess how many leaders have been based in Britain after the ouster of Egypt's first democratically elected President, Mohammad Morsi of the Brotherhood, in a military coup last year.
The review is being led by Sir John Jenkins, Britain's ambassador to Saudi Arabia, which has also declared the Brotherhood a terrorist organisation.
The Egyptian political organisation's backing installed Morsi as the country's first civilian president but he was ousted in military coup amid widespread street protests.
In December, the new Egyptian government declared the Brotherhood a terrorist group after blaming it for an attack on a police station that killed 16 people.
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