Interim Prime Minister Hazem Beblawi has put forward a proposal to legally dissolve the Brotherhood.
In a related development, Former Egyptian interim vice-president Mohamed ElBaradei has boarded a flight to Austria after his resignation was accepted by Egypt's interim president Adly Mansour, the state-run EGYnews site said today.
Meanwhile, the country's cabinet was analysing the crisis that erupted after military ousted former president Morsi on July 3, sparking deadly clashes that left hundreds dead.
His proposal to dissolve the Brotherhood raises the stakes in the struggle for the control of Egypt, BBC reported.
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If it is acted upon, it could force the group underground and allow its sources of funding to be targeted.
Despite being closely allied to deposed President Morsi's government, the Brotherhood has always been a banned organisation, dissolved in 1954 by Egypt's military rulers.
But it recently registered itself as a non-governmental organisation.
A statement by the "Anti-Coup Alliance" called for fresh protests and said that their daily campaign in defiance of an intensifying crackdown, would continue.
Egypt's interim government has also implored the global community to listen to its side after days of deadly violence.
Members of the foreign ministry showed a video-and-photo montage today of the recent carnage, blaming terrorists for the chaos.
Since Wednesday, over 800 people have died in clashes that erupted after security forces stormed two camps set up by Morsi loyalists in Cairo demanding his reinstatement.
Egypt's security forces cleared the al-Fateh mosque in Cairo yesterday after a long stand-off with Brotherhood supporters holed up inside.