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The Egyptian President Hosni Mubarak's announcement that he will stay in office has exposed deep divisions within the government, the army and Cairo's foreign allies.

Hours before Mubarak made his address, the army said the president would meet the demands of anti-government protesters by stepping down immediately.

The secretary-general of the ruling National Democratic Party Safwat el-Sherif has also said that he did not expect Mubarak to remain president on Friday.

The US government also stepped up pressure on Egypt to address the concerns of demonstrators.

Mubarak declared on Wednesday that he will not step down after three decades in power and transferred some of his authorities to Vice President Omar Suleiman.

US President Barack Obama has said the transition of power is not enough and Cairo must spell out a clear path to democracy.

The European Union has lambasted Mubarak for his decision to cling to power, saying the strongman failed to open the way for quick reforms.

Mohamed ElBaradei, a leading opposition figure has called on the army to intervene to "save Egypt from a disaster."

ElBaradei said “Mubarak's speech is an act of deception on a grand scale,” warning that it will lead to violence.

Meanwhile, protesters pledged to launch their most spectacular protest yet in Cairo on Friday to demand Mubarak's departure and his newly appointed deputy.

Protesters in Liberation Square are gearing up for the so-called 'march of millions' to presidential palace, insisting that they do not desire a military regime.

Several thousand protesters have gathered outside the state TV calling for Mubarak's immediate departure.