Morsi addressed the Shura Council, al-Masry al-Youm reported. The speech was broadcast to the country on television.
"You now have assumed full power to legislate until the new Council of Representatives convenes," the president told the upper house of Parliament. "I invite you to work hard, cooperate with the government, and discuss with all political parties and forces and community agencies to issue the necessary legislation, motivated by the necessity of excellence and the pursuit of perfection."
Morsi said the council for the first time has the power to legislate.
The president, a longtime leader in the Muslim Brotherhood, has been under fire from secular and left-wing parties over the referendum on Egypt's draft constitution. The constitution was adopted but opponents say the voting was flawed.
In his speech Saturday, Morsi blamed Egypt's problems on President Hosni Mubarak, who is now in prison after being ousted last year.