Egypt's military rulers have decide to speed up presidential elections, a key desire of protesters packing Cairo's Tahrir Square.
Field Marshal Mohamed Hussein Tantawi, chief of the Supreme Council of the Armed Forces, told on national TV they will happen by July 2012.
He said he had accepted the resignation of the cabinet and that parliamentary elections coming week would go ahead.
It follows days of protests in Cairo's Tahrir Square over the pace of reform.
Tens of thousands of people agreed to pack Tahrir Square on Tuesday evening.
Witnesses said several appeared to refused the military's current concessions, chanting: "We are not leaving, he (Tantawi) leaves."
Coming week's parliamentary elections are due to set in train a process of transition to democracy following the toppling of President Hosni Mubarak in February.
But many Egyptians fear the military intends to hold on to power, whatever the outcome of the polls.
Under the military's original timetable, presidential elections may not be happened until 2013.
Field Marshal Tantawi said in press conference that the military was only there to save the people and military did not seek permanent power.
"The armed forces, represented by their Supreme Council, do not aspire to govern and put the supreme interest of the country above all considerations," he said.
He also said the military was ready to hand over power "immediately" if a public referendum backed the move.
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