Anti-government protesters have taken to the streets in Egypt for a fifth day despite President Mubarak's promise to appoint a new cabinet.
Thousands have gathered in central Cairo and there have been clashes with security forces, while protests are also reported in Alexandria.
The army has advised people to obey curfews and avoid gathering in groups.
Friday saw tens of thousands on the streets in protests that continued into the night, defying a curfew.
Mr Mubarak responded by sacking his government. In a televised address - his first public comments since the protests began on Tuesday - he also accused the protesters of destabilising the country.
The government has now formally resigned, with reports suggesting that Racheed Mohamad Racheed - current minister of investment, commerce, and industry - will be named as the new prime minister.
Tanks and armoured personnel carriers are on the streets of Cairo, where fires from the previous day's violence are still smouldering. Mobile phone services have been restored in the city, but the internet remains down.
Tahrir Square is again the main focal point for demonstrators, who are shouting anti-Mubarak chants.
In Suez, soldiers are on the streets after the city's police and authorities fled following Friday's violence in which the main police station was burned down.
And reports from the northern Egyptian city of Alexandria says thousands of protesters are on the streets, with clashes occurring between protesters and demonstrators.
Mr Mubarak's televised address on Friday evening followed a day of violence and anarchy.
In Cairo, protesters set fire to the headquarters of the governing NDP party and surrounded state TV and the foreign ministry.
The army secured the Egyptian Museum, home to such treasures as the gold mask of King Tutankhamen, to protect it from looters.
Medical sources said at least five people were killed in Cairo on Friday, with a further 13 losing their lives in Suez. If confirmed, that would bring the death toll to at least 26 since the protests began on Tuesday. Hundreds have been injured.
The BBC protested to the Egyptian authorities after a reporter for BBC Arabic, Assad Sawyer, was arrested and beaten by plain-clothes policemen in Cairo.
'Moment of promise'
US President Barack Obama said he had telephoned President Mubarak and told him he must give meaning to his pledges of greater democratic and economic freedom.
Mr Obama said a violent response by Egyptian authorities would not address the grievances of the people, and he also asked protesters to desist from violence. He also called on the Egyptian government to stop interfering with the internet, social networking sites, and mobile phone services.
The BBC's Paul Adams in Washington said there is no immediate suggestion that the White House is cutting its ties with Mr Mubarak, its long-time ally but it is clearly giving him the chance to turn the unrest into what Mr Obama described as "a moment of promise".
Earlier, White House spokesman Robert Gibbs said Washington would review its aid to Egypt based on events in the coming days. Egypt is the fourth largest recipient of American aid, after Afghanistan, Pakistan and Israel.
Britain, the US and France are all advising against non-essential travel to Egypt.
The unrest in Egypt follows an uprising in Tunisia two weeks ago, in which President Zine al-Abidine Ben Ali was toppled after 23 years in power.
The Tunisian upheaval began with anger over rising food prices, high unemployment and anger at official corruption - problems which have also left many people Egypt feeling frustrated and resentful of their leadership.
Source: BBC News
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