A CAIRO court has convicted ousted Egyptian president Hosni Mubarak of embezzlement and sentenced him to three years in prison.

The corruption case against the 86-year-old, who is kept in custody at a military hospital, is one of two against the former president who was ousted in a popular uprising in 2011 after nearly three decades in power.

He is being retried over the killings of hundreds of protesters during the uprising. Mubarak's two sons, one-time heir apparent Gamal and wealthy businessman Alaa, were also convicted of corruption and sentenced to four years in prison each in the same case.

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The three Mubaraks were convicted of charges they embezzled millions of dollars' worth of state funds in over a decade towards the end of Mubarak's rule, the funds were meant for renovating presidential palaces.