The Islamist-drafted constitution would be frozen and presidential elections held early, he said, without specifying when.
The armed forces, which had deployed troops and armour across the country, would “remain far away from politics,” he stressed.
In Cairo, celebrations at the news began immediately.
Tens of thousands of people took to the streets of the capital to celebrate, cheering, whistling, letting off firecrackers and honking car horns for several hours.
“It’s a new historical moment. We got rid of Morsi and the Muslim Brotherhood,” said one celebrator, Omar Sherif.
In an amateur video posted online, Morsi declared: “I am the elected president of Egypt” and urged people to “defend this legitimacy”.
And Morsi’s national security adviser Essam al-Haddad, said on Facebook: “For the sake of Egypt and for historical accuracy, let’s call what is happening by its real name: military coup.”
But the opposition Congress Party of Amr Mussa insisted “this is not a coup”.
“Consultations will start from now, for a government and reconciliation,” said Mussa, a former Arab League chief, who last year ran against Morsi for the presidency.
Morsi, Egypt’s first freely elected president, had come under massive pressure in the run-up to Sunday’s anniversary of his maiden year in office.
His opponents accused him of failing the 2011 revolution by concentrating power in the hands of his Muslim Brotherhood.
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