The campaign of Egyptian presidential candidate Ahmed Shafiq said on Monday it rejected a claim by the Muslim Brotherhood that its candidate Mohammed Mursi had won a historic presidential election.

"We reject it completely," Shafiq campaign official Mahmoud Barakeh told reporters of the Brotherhood's proclaimed victory.

Activists gathered at Cairo's iconic Tahrir Square warned Egypt's ruling military on Sunday they stand ready to reignite the revolution if the army clings to power.

"We're still here to carry the torch" of the revolution, warned Marwan Adel at the square which in February 2011 became the cradle of the uprising that ousted former president Hosni Mubarak.

Egypt's ruling military council is to stay in control of legislation and the budget in the absence of a parliament, even as the country prepares to announce a new president, military sources told Agence France Presse Sunday.

The Supreme Council of the Armed Forces (SCAF), which took power when president Hosni Mubarak was ousted in an uprising last year, is set to issue an amended constitutional declaration, consolidating its powers just hours before Egypt wraps up a divisive presidential election to pick Mubarak's successor.

The two rockets, apparently fired from Sinai, which landed near towns in the deep south of Israel were linked to the Egyptian presidential election, a senior Israeli security source told AFP on Sunday.

"The rockets fired at Israel over the weekend were a one-off and carried out by those who wanted to influence the Egyptian presidential election," he said referring to militant groups in the Sinai.

Egyptians voted Sunday on the final day of a divisive presidential run-off between an Islamist and Hosni Mubarak's last prime minister, amid moves by the army to consolidate power ahead of the final results.

Former air force chief Ahmed Shafiq, who served as ex-president Mubarak's prime minister in the last days of the uprising that toppled him, is vying for the top job against Muslim Brotherhood candidate Mohammed Mursi.

The Muslim Brotherhood on Saturday accused Egypt's military of seeking to monopolize power by disbanding the Islamist-dominated parliament and demanded a referendum on the decision.

"Constant threats to dissolve parliament, elected with the will of 30 million Egyptians, confirm the military council's desire to monopolize power," the Brotherhood's political arm said in a statement.

Egypt's military told parliament on Saturday it has been dissolved and banned its members from entering the house after a court annulled the last legislative poll, official media and a senior MP said.

The Islamist-led parliament received a notice saying that Egypt's ruling generals had decided "to consider parliament dissolved," the official MENA news agency reported.

Ousted Egyptian president Hosni Mubarak, who is serving a life sentence in jail, remains in a "stable" condition, the Egyptian interior minister said on Saturday.

The former leader's health is "stable" and he "is getting progressively better," Mohammed Ibrahim told reporters, adding that a decision to transfer Mubarak's sons Alaa and Gamal to the same prison had "borne fruit."

As Egyptians voted for a new president on Saturday, many of the country's Coptic Christians said they were backing Ahmed Shafiq, a former prime minister they believe can stem a rising Islamist tide.

In the working-class Cairo neighborhood of Shobra, home to a large Christian community, 30-year-old Makram was proud to declare his support for Shafiq, the last premier to serve under ousted president Hosni Mubarak.

Israeli sappers on Saturday recovered the debris of a rocket fired into the south of the Jewish state late on Friday, a military spokesman said.

"Last night, an explosion in the Arava valley was heard, and this morning we recovered the remains of a device we have now identified as a Grad-type rocket," the spokesman told Agence France Presse.