The document will come into force after approval by parliament, expected to be given today.
A state of emergency was introduced in Egypt after Islamic extremists assassinated then-president Anwar Sadat in October 1981.
Mubarak, who has ruled Egypt ever since, pledged before the September 2005 presidential election to lift the emergency law. However, he has since said the law cannot be lifted until a new law on fighting terrorism is adopted by lawmakers.
The emergency law has come under international criticism, as it allows police to detain suspects without trial for long periods, and allows civilians to be tried in military courts.
Members of the ruling National Democratic Party support the extension, saying the state of emergency does not infringe upon the rights of ordinary citizens and is necessary to prevent disorder.
Opposition parties have said the emergency law is widely abused and is a tool for suppressing dissent.
