The Muslim Brotherhood emerged from decades as an outlawed movement to become the best organised political force after the downfall of Mubarak. Members of the Brotherhood - which renounced violence decades ago - are accused by the state of launching a campaign of militancy.
The 85-year-old Mubarak, arrested after his overthrow in 2011, can no longer be held on a corruption charge, a court ruled on Monday in a decision his lawyer said removed one of the last obstacles to his release on bail.
Fareed el-Deeb, Mubarak's lawyer, told Reuters: "All we have left is a simple administrative procedure that should take no more than 48 hours. He should be freed by the end of the week."
A judicial source, without confirming that Mubarak would be released, said Mubarak would spend at least two more weeks behind bars before the criminal court can make a final decision in another corruption case against him.
The United States said on Monday it was still reviewing whether to freeze any of the $1.55 billion it gives Egypt in mainly military annual aid. The United States has been a close ally of Egypt, the biggest nation in the Arab world, since it made peace with Israel in 1979.
The United States also voiced concern about the deaths on Sunday of 37 men who authorities said were suffocated by tear gas during a bid to flee custody.
"We are ... deeply troubled by the suspicious deaths of Muslim Brotherhood prisoners in a purported prison escape attempt near Cairo," State Department spokeswoman Jen Psaki told reporters in Washington.
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