The Muslim Brotherhood, Egypt's largest opposition group,is in talks with other anti-government figures to form a national unity government without President Hosni Mubarak, a group official told DPA on Sunday.
Although the Muslim Brotherhood is officially banned from running for elections for parliament, some movement members have presented candidacy for parliament as independents.
Gamal Nasser, a spokesman for the Brotherhood, told DPA that his group was in talks with Mohammed ElBaradei - the former UN nuclear watchdog chief - to form a national unity government without the National Democratic Party of Mubarak.
The group is also demanding an end to the draconian Emergency Laws, which grant police wide-ranging powers The laws have been used often to arrest and harass the Islamist group.
Nasser said his group would not accept any new government with Mubarak. On Saturday the Brotherhood called on President Mubarak to relinquish power in a peaceful manner following the resignation of the Egyptian cabinet.
Speaking to CNN later Sunday, ElBaradei said he had a popular and political mandate to negotiate the creation of a national unity government.
"I have been authorized -- mandated -- by the people who organized these demonstrations and many other parties to agree on a national unity government," he told CNN.
"I hope that I should be in touch soon with the army and we need to work together. The army is part of Egypt," the opposition leader added.
Opposition figure Mustafa el-Naggar stated that ElBaradei "will be joining protesters in Tahrir," adding he would come to the square later on Sunday, his first visit to the hub of the protest since returning to Egypt on Thursday.
The Egyptian cabinet formally resigned Saturday at the command of Mubarak, following violent anti-government protests that have now reached their sixth day unabated.
Mubarak has yet to comment on the cabinet's resignation. The embattled president addressed the country on Saturday for the fist time since the riots began, saying that he had no intention to resign.
The protests are the most serious challenge to Mubarak's 30-year authoritarian rule. The embattled president defended the security forces' crackdown on protesters, but said that he will press ahead with social, economic and political reforms in the country.
Mubarak has not said yet whether he will stand for another six-year term as president in elections this year. He has never appointed a deputy and is thought to be grooming his son Gamal to succeed him despite popular opposition.