The BBC's Jon Leyne in Cairo says the move
will raise fears that Egypt is moving back towards military rule.
Mr Morsi has tried to calm days of protests
by annulling a decree giving him huge powers, but a 15 December vote on a new
constitution is to go ahead.
Opposition leaders rejected the move and
called for protests on Tuesday.
Islamist groups have said they will hold
counter demonstrations, raising fears of further bloody clashes on the streets
of the Egyptian capital.
It is not clear if the opposition will
boycott the referendum, our correspondent says, although that seems to be the
implication.
They say the body that drafted the
constitution was dominated by Mohammed Morsi's Islamist allies.
In a statement after talks on Sunday, the
opposition National Salvation Front said it would not recognise the draft
constitution "because it does not represent the Egyptian people".
"We reject the referendum which will
certainly lead to more division and sedition," spokesman Sameh Ashour
said.
On Sunday, hundreds of opposition
protesters gathered outside the presidential palace in protest at the
referendum.
They chanted anti-Muslim Brotherhood
slogans and held up banners reading slogans such as "Morsi, hold back your
thugs" and "The people demand the fall of the regime".
"The voting will still take place on
the 15th and we are all here because we're saying no, none of us want a cult to
rule us," said one protester quoted by the Associated Press news agency.
Amid the rising tension, Mr Morsi ordered
the military to maintain security and protect government buildings until the
results of the referendum are announced.
The new presidential decree is effective
from Monday. The military is asked to co-ordinate with the police on
maintaining security and is also entitled to arrest civilians.
The army has built a wall of concrete
blocks to seal off the presidential palace, which has been the focus of
opposition demonstrations.
Earlier, Mohamed Soudan, foreign relations
secretary of the Muslim Brotherhood's Freedom and Justice Party, said Mr Morsi
was constitutionally bound to go ahead with the vote.
The president says he is trying to
safeguard the revolution that overthrew Hosni Mubarak last year, but his
critics accuse him of acting like a dictator.
Mr Morsi's decree of 22 November stripped
the judiciary of any right to challenge his decisions and triggered violent
protests.
Although the decree has been annulled, some
decisions taken under it still stand.
The general prosecutor, who was dismissed,
will not be reinstated, and the retrial of former regime officials will go
ahead.
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