Attorney Tarek Mahmoud filed the lawsuit in 2012 seeking to revoke Shaimaa and Osama Morsi's U.S. citizenship. They were born in the United States while their father was a professor at California State University between 1982-1985. Egypt's constitution said the president must be an Egyptian citizen and that both parents must be Egyptians and cannot hold any other citizenship.
The constitution is silent about the nationality of the president's children, Ahram Online reported.
There was no explanation of how a lawsuit in Egypt could revoke a person's U.S. citizenship.
In April, presidential candidate Hazem Salah Abu Ismail was disqualified after it was reported his mother held a U.S. passport, which he still denies.
Controversy began to surround Morsi's children after another son, Omar Morsi, got a job with the Egypt Airports and Air Navigation Holding Co., and was reported to be receiving a huge salary, Ahram Online said. He turned the job down, saying his monthly salary would have only amounted to about $130.