Egypt's military has rejected the demands of pro-democracy protesters for a swift transfer of power to a civilian administration, saying it will rule by martial law until presidential election is held in September.

The army's announcement, which included suspension of the Egyptian constitution, was a further rebuff to some pro-democracy activists after troops were sent to clear demonstrators from Cairo's Liberation Square, the center of the protests that brought down President Hosni Mubarak, a Press TV correspondent reported.

"We do not want any protesters to sit in the square after today," said the head of the military police, Mohamed Ibrahim Moustafa Ali on Monday.

Many pro-democracy Egyptians refused to leave Liberation Square, saying they would remain until the army took a series of steps toward democratic reforms, which include installing a civilian-led government and abolishing the repressive state of emergency.

The ruling military council said it intends to retain power for six months or longer while Presidential election is scheduled and will rule by decree.

It suspended the constitution and said a committee will draw up amendments that will be put to a referendum.

It also dissolved the country's widely discredited parliament, elected in a tainted ballot last year.

The army is also expected to issue a communiqué on Monday saying that it will crack down on those creating "chaos and disorder" and ban strikes.

The moves were welcomed by some members of the opposition. Others, however, were disturbed by the army's failure to agree to a civilian-led interim government to end the 30-year state of emergency and to release political prisoners.