Egypt's Supreme Council of the Armed Forces responded by holding an emergency meeting to discuss the unexpected action taken by the newly elected president, a source close to the military council told Ahram Online.
The council had shut down the People's Assembly in mid-June after the High Constitutional Court ruled the elections law that governed last year's legislative elections was unconstitutional.
The court is expected to rule on the constitutionality of the council's decision to dissolve the lower house Monday.
Morsi's decree calls for new parliamentary elections 60 days after ratification of new national constitution, Ahram Online said.
Assembly Speaker Saad el-Katatni said in a statement Sunday evening the legislative body would meet "within hours," and exercise its full legislative and regulatory responsibilities.
"The presidential resolution emphasizes respect for the rule of law and the [democratic functioning] of state institutions," el-Katatni said in a short statement released to reporters.