The move that effectively overthrows the nation's first democratically elected leader.
The commander, Gen. Abdel-Fattah el-Sissi, also announced the military's intention to hold new elections, although he did not give a date.
The announcement set off wild celebrations among protesters who had demanded Morsi step down.
But it is likely to provoke an angry backlash among his Islamist supporters.
SBS World News Australia correspondent Brett Mason is in the Egyptian capital, Cairo, and spoke to Michael Kenny.
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