"The Cabinet has declared the Muslim Brotherhood group and its organisation as a terrorist organisation," Hossam Eissa, the Minister of Higher Education said, reading out a statement after a long meeting of the Cabinet.
The implications of the declaration were that those who belong to the group, finance it or promote its activities would face punishment, he said.
Social solidarity minister Ahmed al-Borei said the government would ban all activities of the Brotherhood, including protests.
This escalation gives the authorities more power to crack down on the Brotherhood.
Prime Minister Hazem El Beblawi had yesterday declared Muslim Brotherhood a "terrorist organisation".
"Prime Minister Beblawi has declared the Muslim Brotherhood as a terrorist organisation," state-run news agency MENA quoted the premier's spokesperson as saying.
The condemnation of the Muslim Brotherhood - considered the largest and best-organised political force in Egypt - came weeks ahead of a referendum on a new constitution that is described as a major step toward restoring democracy since the military removed President Morsi in July.
Since the ouster of Muslim Brotherhood leader Morsi - the country's first freely elected president - his supporters have staged rallies demanding his reinstatement. Over 2,000 Brotherhood members have been arrested, including the movement's supreme guide Mohamed Badie.
