Egyptian president Hosni Mubarak has set up a committee to discuss and recommend constitutional changes that will relax eligibility rules for who can run for president and limit the number of presidential terms.
Vice president Omar Suleiman said Mr Mubarak also decreed the creation of a separate committee to monitor the implementation of all proposed reforms.
The moves are the first concrete steps taken by the authoritarian ruler to implement reforms promised during two weeks of mass protests.
So far government concessions have fallen short of the demands of protesters that Mr Mubarak immediately step down.
Mr Mubarak also ordered an investigation into clashes last week between the protesters and supporters of the presidency.