The Supreme Council of the Armed Forces (Scaf) which is overseeing a transition to civilian rule, appointed Ex-Prime Minister Kamal Ganzouri to form a new government after the previous-appointed cabinet resigned after the recent clash between the protestors and the police claimed the lives of 38 civilians.
Mr Ganzouri headed Egypt’s government from 1996 to 1999 under Mr Mubarak.
During his term as prime minister, he was known as the “minister of the poor” because he was seen as representing the less well-off, and he remains popular with Egyptian.
The military is planning to hold the election next week as scheduled but the protesters are demanding the postponement of the election until the military steps down.
Despite promises by the council to start the transition as soon as possible, many Egyptians fear the military intends to cling to power.
Meanwhile, the Military issued an apology for the deaths of about 38 protesters in clashes with police since Saturday.
Many Egyptians want elections to go ahead unhindered. The main opposition group, the Muslim Brotherhood, is not supporting the protests and expects to do well in the polls.
Report by Adhir Roy Chowdury