State television said Mubarak would address the nation later Thursday and the military announced it would respond to the "legitimate" demands of the people in a statement seen as indicating it was ready to fill the vacuum.
Egyptian television interrupted all programming to present footage of a panel of senior military officers, one of whom read out a statement described as "communique number one" of the Supreme Council of the Armed Forces.
"In support of the legitimate demands of the people," the army "will continue meeting... to examine measures to be taken to protect the nation and its gains and the ambitions of the great Egyptian people," it said.
It was not clear if the announcement -- redolent of the language of a coup -- would end Mubarak`s 30-year-reign, the demand of hundreds of thousands of people who have filled the country`s streets in the two-week-old uprising.
Prime Minister Ahmed Shafiq insisted, however, that no final decision had been taken and that the armed forces council was reporting to Mubarak.
State television later said Mubarak was holding talks now with Vice President Omar Suleiman at the presidency in Heliopolis, the district where the president has his main residence.
As rumours swirled that there a military coup was under way in Egypt, CIA director Leon Panetta said the beleaguered Mubarak would likely hand over power to Suleiman.
A wave of anticipation swept through Cairo`s Tahrir Square, the epicentre of the unprecedented wave of pro-democracy protests, as rumours spread among the hundreds of thousands of joyful, flag-waving protesters massed there.
A military cordon deployed around the square to contain the protest, backed by a squadron of tanks, had not moved and there was no sign of any crackdown, as joyful crowds chanted: "The army and the people are one hand!"
On the bridge over the River Nile carloads of revellers converged on the square, waving flags and honking their horns.
Pro-democracy cyber activist Wael Ghonim, a hero to the anti-regime movement after he was jailed and held blindfolded for 12 days for helping to organise the first protest last month, warned his followers to be cautious.
"Guys, don`t do much speculation for now, just wait and see," he posted on his popular Twitter feed. "Long live Egypt!" But most people seemed convinced that something was in the air as they waited for Mubarak`s address to the nation.(*)
Editor: Aditia Maruli Radja
Copyright © ANTARA 2011
