Mohamed Ibrahim has been removed from his post as interior minister in a surprise cabinet reshuffle involving eight ministries.
He will be replaced by Maj. Gen. Magdi Abdel-Ghaffar, a leading figure in national security.
The ministries included in the move are communication, education, agriculture, housing, tourism, technical education and training, culture and — most prominently — interior.
Prime Minister Ibrahim Mahlab confirmed the reshuffle during a press conference for the upcoming economic conference.
He said the eight new ministers had been sworn in earlier on Thursday.
Ibrahim, recently a controversial figure amid what is perceived to be a heavy security crackdown on state opponents, was originally appointed in a cabinet reshuffle in January 2013. He was one of the few ministers to keep his post after the ouster of ex-President Mohamed Morsi.
Human rights activists and opposition figures have been calling for his dismissal since the death of leftist activist Shaimaa Sabbagh in January 2015.
Egypt has been witnessing an acute security situation since the ouster of Islamist president Mohamed Morsi in summer 2013.
The situation has intensified recently with shootings and bomb attacks occurring at an increasing frequency. They also appear to happen in more civilian areas after months of attacks mainly targeting police and army personnel and facilities, claimed by anti-government militant Islamist groups.
In addition, incidents involving policemen in deadly violence against civilians have increased, drawing wide criticisms.
The reshuffle, involving Ibrahim, comes ahead of Egypt’s anticipated investment summit expected to be held in Sharm El-Sheikh between March 13-15. Egypt has been hoping to attract investors for its cash-strapped economy.