The military said it considers the people's demands "legitimate".

It comes as Egypt's new vice president, Omar Suleiman, says he has been asked by Mr Mubarak to begin a dialogue with the opposition for constitutional change.

Interestingly, it comes as those various political factions, which as a rule do not get on, said they are prepared to talk and work together to bring about change.

To many people it is being seen as an attempt by Mr Mubarak to cling onto power - to get his political opponents to do some type of deal with him by which he stays in place.

When the military made its announcement, several tanks blocking access to Cairo's main square where protests have been held, rolled back some 500 meters.

Everyone looked at each other in disbelief because the tanks had been stationed there for a few days.

There was the sense they were withdrawing to perhaps allow for a large number of people to enter the square uninhibited.

The army have always said they would not fire on protesters, but now they have made their position very clear and are saying they will not be involved in violent confrontation.

Meanwhile, tens of thousands of protesters have ignored a curfew, troops and police by returning to the capital's Tahrir (Liberation) Square in a seventh day of demonstrations.

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