Egyptian President Mohammed Morsi Sunday ordered the powerful head of the army and defence minister, Field Marshal Hussein Tantawi, into retirement and cancelled a constitution issued by the military that restricted presidential powers, dpa reported.
Tantawi was the head of the Supreme Council of the Armed Forces (SCAF), which ruled the country after president Hosny Mubarak was toppled in February 2011.
Tantawi kept the defence portfolio in a new government formed earlier this month.
Morsi, from the Muslim Brotherhood, and his Islamist allies did not hide their displeasure at a temporary constitution issued by the military in mid-June curtailing the president's role and granting the army sweeping powers.
The military retook legislative control after the country's top court dissolved the lower house of parliament where Islamists had a clear majority.
"From now the president will exercise his complete powers," the presidential spokesman said Sunday.
It is not clear yet if the president has the authority to cancel the temporary constitution. Nor is the fate of the SCAF clear.
The spokesman said Morsi had appointed Tantawi as his advisor.
"The president has ordered that the Collar of the Nile (a prestigious medal) be conferred on Field Marshal Hussein Tantawi in recognition of the great services he has made to the nation," the spokesman added.
Morsi decreed that Abdul-Fatah al-Sessi would replace Tantawi as defence minister and the general commander of the army, according to state television.
Footage on state television showed Morsi swearing in the new defence minister and asking him to convey his greetings to army personnel.
Morsi also sent into retirement the chief of army staff, Sami Anan, and appointed him as a presidential advisor. Major General Sedki Sobhi has replaced Anan, state television reported.
The latest moves are seen as escalating the power struggle between Morsi, who took office on June 30, and the military.
Earlier this week, Morsi sacked the head of the intelligence service and the commander of the Presidential Guard.
The shake-up of the top army commanders comes as the Egyptian Army is carrying out a massive offensive in the Sinai Peninsula against Islamist militants suspected of killing 16 soldiers at the border town of Rafah, near Gaza, a week ago.
Morsi on Sunday also appointed Mahmoud Mekki, a former judge, as vice president. Mekki will be part of a diverse presidential team, which Morsi promised to set up during his campaign for presidency.
Morsi is Egypt's first elected civilian and Islamist president. All the four previous presidents came from the army.