Egypt's ruling military council said on Thursday that a presidential run-off election will go ahead as scheduled on June 16 and 17, after a court rejected a law barring one of the candidates.

"The Supreme Council of the Armed Forces has assured that the presidential run-off will take place on schedule on Saturday and Sunday," the official MENA news agency said.

Earlier the Supreme Constitutional Court ruled unconstitutional a political isolation law baring senior officials of the regime of ousted president Hosni Mubarak and top members of his now-dissolved National Democratic Party from standing for public office for 10 years.

The law applies to those who served in the 10 years prior to Mubarak's ouster on February 11, 2011 after an 18-day popular uprising.

The court also ruled the whole Islamist-dominated parliament illegitimate, paving the way for the military to resume legislative powers, state media and a military source said.

The military council, which took power when Mubarak was ousted, has vowed to cede power to civilian rule after a president is elected.

The uncertain transition has been thrown into further disarray by Thursday's ruling which annulled parliament. The new president's powers were to have been defined by a constituent assembly appointed by parliament this week.