Egypt's parliamentary speaker said the chamber will reconvene today, risking a showdown with the army after the new President defied the generals by quashing the dissolution of the legislature they had ordered last month.

Saad al Katatni, who like President Mohamed Mursi hails from the long-suppressed Muslim Brotherhood, said the lower house would sit from noon today, overturning a court judgment and military order issued a month ago, before Mr Mursi's election.

The move threatens Egypt with fresh political uncertainty, and is likely to damage a fragile economy and dash the hopes of many desperate for a period of calm after 17 turbulent months since Hosni Mubarak was overthrown.

The military council, which had run Egypt since Mr Mubarak was toppled, handed powers to Mr Mursi on June 30, but sought to trim his authority before he took office, dissolving parliament and taking legislative power for itself.

However, Mr Mursi said on Sunday he was recalling parliament and would hold an election once a constitution was in place, meaning the parliament would not serve a full four-year term.