Egypt's top judges have accused President Mohammed Mursi of staging an "unprecedented attack" on the judiciary.
The president passed a decree earlier this week granting himself extensive new powers.
It includes a bar on any court dissolving the constituent assembly, which is drawing up a new constitution.
Thursday's decree has sparked angry demonstrations, with attacks on offices of Mr Mursi's Muslim Brotherhood party.
The president has said he is acting to protect the revolution.
The BBC's Jon Leyne in Cairo there had been reports that the Supreme Court could have been about to disband the constituent assembly for a second time.
That could seriously derail the transition to democracy, says our correspondent, further delaying new parliamentary elections, which could deter Egypt's political leaders from taking tough decisions while they wait for the vote.
Mr Mursi's ruling also bans any challenging of his decisions and laws, and opens the way for a retrial of people convicted of killings during Egypt's 2011 uprising which toppled Mubarak.
The US said earlier that the move had raised concerns in the international community.
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