"The armed forces reiterates its call that the demands of the people be met," a televised statement from the armed forces said, giving political parties a 48-hour period "as a last chance to bear the historical burden that the nation is currently facing."
"The Egyptian Armed Forces have set a deadline, which ended yesterday, for all political powers to reconcile and end the current crisis, but no progress has been made. Consequently, the Egyptian people have taken to the streets," the statement said.
It also referred to the armed forces' "responsibility" to step in if national security was threatened.
Army's statement was greeted with joy by thousands of protesters, who have been demanding 61-year-old Mosri's resignation.
"Come down Sissi, Morsi is not my president," the protesters chanted, calling on the country's army chief, Abdel Fattah al-Sissi, to intervene.
Earlier, anti-government protesters also stormed the national headquarters of Muslim Brotherhood here. They also ransacked the six-storey building and set it on fire.
In the capital here, thousands of people massed at the iconic Tahrir Square - the epicentre of pro-democracy protests in 2011 - under the banner of Tamarod (Rebellion) movement which is driving the campaign with a petition of signatures seeking Morsi's ouster and a snap election.
"We give Mohamed Morsi until 5:00 pm (1500 GMT) on Tuesday July 2 to leave power, allowing state institutions to prepare for early presidential elections," Tamarod said in a statement on its website.
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