Video | Mubarak out, Egypt celebrates

Mubarak stepped down as leader on Friday, after 18 days of widespread anti-government demonstrations leaving the country in the hands of the high command of the armed forces, headed by the defence minister.

In Cairo's Tahrir Square - the heart of the demonstrations - the news was greeted with jubilation by a crowd of tens of thousands.

Demonstrators in central Cairo continued to celebrate the departure of Mubarak into well into the night, dancing, chanting slogans and singing songs. While many are celebrating the moment, however, many others are already returning to work, setting the wheels in motion for the nation’s recovery.

Mubarak has already left Cairo and is in the Red Sea resort of Sharm el-Sheikh where he has a residence, international media is reporting.

Outside state TV and other government buildings, the army and their tanks are still out in force but so far the military have given few details of how they are going to run the country. It's even not clear if the vice-president or any of Mubarak's officials will still retain their posts.

US President Barack Obama called Egypt an inspiration, but said it must now move to civilian and democratic rule.

The anti-government protests that began on 25 January were triggered by widespread unrest in Egypt over unemployment, poverty and corruption.

The celebrations continued in other cities, with hundreds of protesters in Alexandria waving flags, whistling and dancing.

In the southern city of Assiut, people fired guns in the air and roamed the streets on motorcycles or pick-up trucks, while coffee houses handed out free drinks.

Egypt's state television, a bastion of support for Mr Mubarak's government, started reporting the celebrations across the country. Opposition leader Mohamed El Baradei described it as "the greatest day of my life."

Announcing Mubarak's resignation on Friday on state TV, Vice-President Omar Suleiman said the president had handed power to the army. He said that the high command of the armed forces had taken over, a body composed of high-ranking generals and headed by Defence Minister Mohamed Hussein Tantawi.

"During these very difficult circumstances Egypt is going through, President Hosni Mubarak has decided to step down from the office of president of the republic and has charged the high council of the armed forces to administer the affairs of the country," he said. "May God help everybody."

After Mubarak's resignation, a military spokesman appeared on state TV and promised the army would not act as a substitute to a "legitimate government acceptable to the people."

He said the military was preparing the next steps needed to achieve the ambitions of "our great nation" and would announce them soon.