CAIRO ø Egyptian President Hosni Mubarak has ordered a new government that replaces the old guard with technocrats loyal to the president's son.

Egyptian parliamentary sources said Mubarak plans to replace most of the ministers in the government of outgoing Prime Minister Atef Obeid. The sources said the effort began over the weekend when Obeid submitted his resignation, marking the start of the first Cabinet reshuffle in two years.

"It will not just be a change in the Cabinet," a parliamentarian from Mubarak's ruling National Democratic Party said. "It will include all levels of government."

On Friday, Mubarak appointed a new prime minister Ahmed Nazif, communications minister in Obeid's Cabinet, Middle East Newsline reported. Nazif, 55, is a former software engineer who studied at Canada's McGill University and an ally of Mubarak's son, Gamal.

The semi-official Al Ahram daily said the president plans to replace at least 14 of the 27 ministers in Obeid's Cabinet. Obeid's government resigned during an emergency meeting that took about 30 minutes on late Friday.

Already, Nazif has appointed a new foreign minister. The new foreign minister is Egypt's ambassador to the United Nations Ahmed Abu Al Gheit. Al Gheit, 62, replaced Ahmed Maher, who served in the post since 2001. The Egyptian sources said most of the new ministers would comprise of members of the ruling NDP's political committee, a 44-member panel headed by Mubarak's 41-year-old son. Gamal has been regarded as the head of the reform movement in the NDP and over the last two years controlled all major appointments in the ruling party.

The sources said Mubarak, 75, also plans to replace many of his 15 regional governors, most of them former military commanders. They said an announcement could be expected by the end of the week.

Western diplomats said Mubarak's efforts have sought to ensure that Gamal would eventually succeed the president. The diplomats said Mubarak, treated in Germany for what was said to have been a spinal ailment, was seriously ill and was not expected to resume his normal functions.

In June, Mubarak began to replace Egypt's old guard by dismissing Information Minister Sawfat Sharif. The sources said Sharif, who has served in the post since 1981, was said to have objected to Gamal's recommendation to reduce the Cabinet and merge ministries, such as the Information Ministry and the Culture Ministry as well as the Education Ministry and the Higher Education Ministry.

The president was also expected to dismiss his longtime aide, Deputy Prime Minister and Agriculture Minister Yusef Wali. The new Cabinet under Nazif was expected to focus on the economy and reduce unemployment, estimated at 20 percent.