Egyptian military tanks have surrounded Cairo's Tahrir Square, where hundreds of protesters gathered and the crowd was growing.

The atmosphere was tense as demonstrators continued chants of, "Down with Mubarak," hours after President Hosni Mubarak announced that he would remain in power but had asked the country's government to resign.

Tahrir Square, located near many government buildings in the heart of downtown Cairo, has been a focal point for anti-government protests, which started earlier this week.

"I asked the government to resign today and I will commission a new government to take over tomorrow," Mubarak said in a national address on Jan. 29, shortly after midnight.

Mubarak gave no indication that he would step down or leave the country.

"I assure you that I'm working for the people and giving freedoms of opinion as long as you're respecting the law," he said. "There is very little line between freedom and chaos."

At the same time, Mubarak said that "these protests arose to express a legitimate demand for more democracy, need for a greater social safety net, and the improvement of living standards, fighting poverty and rampant corruption."

"I understand these legitimate demands of the people and I truly understand the depth of their worries and burdens and I will not part from them ever and I will work for them everyday," he said, CNN reports.