Egyptian army chief Field Marshal Abdel Fattah al-Sisi will remain as defence minister in a new government, an official source said, quashing speculation he was due to announce a widely expected presidential bid.

"He is expected to continue in his post until all the issues regarding the election laws are resolved," the source told Reuters news agency on Wednesday.

Sisi is widely expected to win the forthcoming presidential election, but has yet to formally announce his candidacy. He must vacate the position of defence minister in order to run.

Prime Minister-designate Ibrahim Mahlab reappointed several other ministers on Wednesday in his new government, including Mohamed Ibrahim as interior minister, state TV reported. Sherif Ismail and Ashraf al-Arabi were also reappointed as the oil and planning ministers.

Egypt's army-backed interim government resigned unexpectedly on Monday. Mahlab was appointed on Tuesday to form a new government.

Sisi, 59, is widely seen as the most powerful figure in the army-backed administration installed after the removal from the presidency of Mohamed Morsi last year.

Reuters