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A confirmed win for Mursi would mark the first time Islamists have taken the presidency of the Arab world's most populous nation, but military moves that appeared to render the post toothless were slammed by activists as a coup.
Representatives of Mursi's rival Ahmed Shafiq, a former air force chief and ex-prime minister under ousted president Hosni Mubarak, disputed the Brotherhood's victory claim, calling it an "act of piracy."
State media reported that initial counts showed Mursi ahead.
"After the counting was finished in all of Egypt's 27 provinces, indications show that Mohammed Mursi has won 51 percent and Ahmed Shafiq won 49 percent," the state-owned Al-Ahram newspaper said on its website.
There were scenes of jubilation at Mursi's Cairo headquarters, where the candidate thanked voters in brief remarks after the Brotherhood said he had secured 52 percent of the ballots cast.
Mursi pledged to work "hand-in-hand with all Egyptians for a better future, freedom, democracy, development and peace."
"We are not seeking vengeance or to settle accounts," he said, adding that he would build a "modern, democratic state" for all Egyptians, Muslims and Christians alike.
Shafiq campaign officials refused to concede victory, saying their figures showed their man was ahead.
"It's a stolen victory because you can't claim to have won a presidential election while the polling stations are still closing," Shafiq campaign manager Ahmed Sarhan told reporters.
"It's an act of piracy to claim victory using totally false figures," he said, adding that preliminary results obtained by the campaign showed Shafiq "still ahead in the vote, with between 51 and 52 percent."
Official results are not expected until Thursday.
Mursi supporters, many tearful, screamed with excitement as several hundred people staged a victory rally in Cairo's iconic Tahrir Square, the hub of protests that led to Mubarak's departure in February 2011.
But their jubilation was overshadowed by the prospect of a looming showdown between the Brotherhood and the ruling military, which granted itself sweeping powers.
-- 'The military hands power to the miltary' --
The Brotherhood also insisted the Islamist-dominated parliament still had the power to legislate.
Its political arm said the Islamists would take part in "all popular activities against the constitutional coup and the dissolution of parliament, beginning on Tuesday," when activists have called for mass demonstrations.
"The parliament remains valid and holds legislative power and control," the Freedom and Justice Party (FJP) said in a statement.
The SCAF has introduced de facto martial law, given itself control of the legislature and state budget and also granted itself veto power on a new constitution to be written by a panel that it will pick.
"The military hands power to the military," read the headline of the independent daily Al-Masry al-Youm.
"A president with no powers," said another independent, Al-Shorouk.
Revolutionary youth movements, which had been split over whether to boycott the election or to vote Shafiq out, denounced the declaration as a "coup."
"The military council, with its unconstitutional coup, gave itself (unprecedented) powers. The military council has never and will never recognise popular legitimacy that contradicts it," the Coalition of Revolution Youth said in a statement.
"The next phase is a very difficult phase," senior Mursi campaign official Khaled al-Qazaz told AFP.
"It already started with the military trying to take all power, which requires all Egyptians to continue the momentum of the revolution to make sure the transition is complete."
The Brotherhood, which was accused of monopolising politics after last year's revolt, now finds itself increasingly marginalised, and even faces a lawsuit challenging its legitimacy and legal status.
But the military insists it will transfer power to the new president.
The election victor will swear his oath before the constitutional court by "June 30, this month," Mamduh Shahin, one of the ruling generals, told a news conference.
Another SCAF general, Mohammed al-Assar, said the vote winner will enjoy full presidential powers.
"The president of the republic will be vested with all the powers of the president of the republic," Assar told reporters.
The US, meanwhile, expressed concern over the latest moves by Egypt's military rulers, according to Pentagon spokesman George Little, adding the SCAF should hand over "full power" to civilian leaders as promised.
"We're deeply concerned about new amendments to the constitution declaration, including the timing of their announcements as polls were closing for the presidential election," Little told reporters.
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Representatives of Mursi's rival Ahmed Shafiq, a former air force chief and ex-prime minister under ousted president Hosni Mubarak, disputed the Brotherhood's victory claim, calling it an "act of piracy."
State media reported that initial counts showed Mursi ahead.
"After the counting was finished in all of Egypt's 27 provinces, indications show that Mohammed Mursi has won 51 percent and Ahmed Shafiq won 49 percent," the state-owned Al-Ahram newspaper said on its website.
There were scenes of jubilation at Mursi's Cairo headquarters, where the candidate thanked voters in brief remarks after the Brotherhood said he had secured 52 percent of the ballots cast.
Mursi pledged to work "hand-in-hand with all Egyptians for a better future, freedom, democracy, development and peace."
"We are not seeking vengeance or to settle accounts," he said, adding that he would build a "modern, democratic state" for all Egyptians, Muslims and Christians alike.
Shafiq campaign officials refused to concede victory, saying their figures showed their man was ahead.
"It's a stolen victory because you can't claim to have won a presidential election while the polling stations are still closing," Shafiq campaign manager Ahmed Sarhan told reporters.
"It's an act of piracy to claim victory using totally false figures," he said, adding that preliminary results obtained by the campaign showed Shafiq "still ahead in the vote, with between 51 and 52 percent."
Official results are not expected until Thursday.
Mursi supporters, many tearful, screamed with excitement as several hundred people staged a victory rally in Cairo's iconic Tahrir Square, the hub of protests that led to Mubarak's departure in February 2011.
But their jubilation was overshadowed by the prospect of a looming showdown between the Brotherhood and the ruling military, which granted itself sweeping powers.
-- 'The military hands power to the miltary' --
The Brotherhood also insisted the Islamist-dominated parliament still had the power to legislate.
Its political arm said the Islamists would take part in "all popular activities against the constitutional coup and the dissolution of parliament, beginning on Tuesday," when activists have called for mass demonstrations.
"The parliament remains valid and holds legislative power and control," the Freedom and Justice Party (FJP) said in a statement.
The SCAF has introduced de facto martial law, given itself control of the legislature and state budget and also granted itself veto power on a new constitution to be written by a panel that it will pick.
"The military hands power to the military," read the headline of the independent daily Al-Masry al-Youm.
"A president with no powers," said another independent, Al-Shorouk.
Revolutionary youth movements, which had been split over whether to boycott the election or to vote Shafiq out, denounced the declaration as a "coup."
"The military council, with its unconstitutional coup, gave itself (unprecedented) powers. The military council has never and will never recognise popular legitimacy that contradicts it," the Coalition of Revolution Youth said in a statement.
"The next phase is a very difficult phase," senior Mursi campaign official Khaled al-Qazaz told AFP.
"It already started with the military trying to take all power, which requires all Egyptians to continue the momentum of the revolution to make sure the transition is complete."
The Brotherhood, which was accused of monopolising politics after last year's revolt, now finds itself increasingly marginalised, and even faces a lawsuit challenging its legitimacy and legal status.
But the military insists it will transfer power to the new president.
The election victor will swear his oath before the constitutional court by "June 30, this month," Mamduh Shahin, one of the ruling generals, told a news conference.
Another SCAF general, Mohammed al-Assar, said the vote winner will enjoy full presidential powers.
"The president of the republic will be vested with all the powers of the president of the republic," Assar told reporters.
The US, meanwhile, expressed concern over the latest moves by Egypt's military rulers, according to Pentagon spokesman George Little, adding the SCAF should hand over "full power" to civilian leaders as promised.
"We're deeply concerned about new amendments to the constitution declaration, including the timing of their announcements as polls were closing for the presidential election," Little told reporters.
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