CAIRO, Egypt - Egyptian President Hosni Mubarak on Saturday ordered a revision of the country's election laws and said multiple candidates could run in the nation's presidential elections, a scenario Mubarak hasn't faced since taking power in 1981.

The surprise announcement, a response to critics' calls for political reform, comes shortly after historic elections in Iraq and the Palestinian territories, balloting that brought a taste of democracy to the region. It also comes amid a sharp dispute with the United States over Egypt's arrest of one of the strongest proponents of multi-candidate elections.

"The election of a president will be through direct, secret balloting, giving the chance for political parties to run for the presidential elections and providing guarantees that allow more than one candidate for the people to choose among them with their own will," Mubarak said in an address broadcast live on Egyptian television.

Mubarak - who has never faced an opponent since becoming president after the 1981 assassination of Anwar Sadat - said his initiative came "out of my full conviction of the need to consolidate efforts for more freedom and democracy."

The audience before him at Menoufia University broke into applause and calls of support, some shouting, "Long live Mubarak, mentor of freedom and democracy!" Others spontaneously recited verses of poetry praising the government.

Mubarak said he asked parliament and the Shura Council to amend Article 76 of the constitution, which deals with presidential elections. Egyptian television reported that the two bodies convened emergency sessions to begin discussing an amendment.

He said the amendment would be put to a general public referendum before the presidential polls, which are scheduled for September.

As recently as last month Mubarak had rejected opposition demands to open presidential balloting to other candidates, and he was obviously aware of the historic potential of his announcement.

"If it happens, it would be the first time in the political history of Egypt that a chance is given to somebody who is capable of shouldering the responsibility to protect the people's achievements and future security to come forward for presidential elections with parliamentary and popular support," he said.

Mubarak has not announced his candidacy for a fifth term, though he is widely expected to be nominated by his party.