Thousands gather in Tahrir Square the birthplace of the 2011 revolution
Egyptian president Mohamed Morsi has refused to step down and says he will protect democratic "legitimacy" with his life.
Addressing the nation in a 45-minute televised speech he said that he had been voted for in a free and fair election and it was his job to "safeguard the revolution".
Mr Morsi called for calm and said Egyptians should not attack the army, police or each other. He was, he said, attempting to get the army to return to its normal duty and withdraw its ultimatum.
The speech followed a statement on Twitter in which he refused to step down and said he would not be dictated to by the military, who have given him an ultimatum to broker a power-sharing government with his political opponents.
The statement said: "President Mohamed Morsi asserts his grasp on constitutional legitimacy and rejects any attempt to deviate from it, and calls on the armed forces to withdraw their warning and refuses to be dictated to internally or externally."
If the president refuses to cave to the demands by Wednesday evening then the army has said it will intervene, dissolving parliament and taking control of the country.
The move has sparked fears of a "military coup" as thousands of pro and anti-government protesters gathered in Cairo, prompting violent clashes which left seven dead.
Mr Morsi's address came after military sources said they would suspend the constitution, dissolve parliament and take over the running of the country if the president did not reach a power-sharing agreement with opponents.
The armed forces, who took control of the country after the overthrow of Hosni Mubarak in 2011, have intensified their presence in Egypt's cities ahead of the deadline.
During a day of high tension, the opposition announced they had chosen the leading dissident and Nobel Peace Laureate Mohamed ElBaradei to represent them in negotiations on the country's future.
The June 30 Front, which includes the Tamarod group which was behind Sunday's record protests, said it had entrusted Mr ElBaradei, who played a significant role in the 2011 revolution, to "ensure the execution of the Egyptian people’s demands and to draft a scenario that aims at the complete implementation of the roadmap for the political transition".
Thousands of people amassed in Tahrir Square, the birthplace of the revolution, and cities across the country as another deadline set by opposition groups for the Muslim Brotherhood's Mr Morsi to step down passed.
A giant crowd also gathered outside the Qasr el-Qobba presidential palace where Mr Morsi has been working in recent days.
A top Muslim Brotherhood leader urged Egyptians to stand ready to sacrifice their lives to prevent "a military coup".
Mohamed al-Beltagui said: "Seeking martyrdom to prevent this coup is what we can offer to the previous martyrs of the revolution."
He was referring to the more than 800 people killed during the 2011 revolution.
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