On Wednesday evening, prime minister Ibrahim Mahlab ordered "Halawet Rooh" (Beauty of the Soul) not to be screened until the censorship board reviews it again.
Revealing clothes worn by the pop and film star in the movie, sexually explicit movements and scenes featuring a young boy fascinated by her have stirred harsh criticism.
The censorship board head, film-maker Ahmed Awad, announced his resignation late Friday on the privately owned television channel CBC Two, saying he stood by his decision to allow the film to be shown.
"I took the decision to allow the movie: I stand by it and I bear complete responsibility," Awad said.
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"The state has another opinion -- they cancelled our decision and withdrew the production", he added, saying he was not consulted.
"Like any other self-respecting official, I presented my resignation," he added.
The plot revolves around Rooh, played by Wehbe, who ignites passions among men in her neighbourhood when her husband is away.
Independent newspaper Al-Masry Al-Youm lashed out at the movie in a review headlined: "Halawet Rooh: how to produce an Egyptian porn movie."
It praised Mahlab's order as "responsible and wise".
One media commentator saw possible sinister connotations in the ban.
"The one who bans a movie because he thinks it breaks morals will ban a movie" tomorrow for political reasons, television host Ibrahim Eissa said.