Egypt's former president Hosni Mubarak has been sentenced to three years in prison for stealing public funds, in a case locally known as the "Presidential palaces case," three years after he was toppled by massive protests.

Cairo's Criminal Court also sentenced his sons, Alaa and Gamal, to four years each for the same charges.

"The court orders Mohamed Hosni Mubarak to be sent to jail for three years," said the judge as Mubarak looked on from a cage flanked by his sons, the Reuters news agency reported on Wednesday.

Mubarak, who faces a number of trial cases, including a retrial over the killing of protesters in the 2011 uprising, is currently residing in a military hospital in Cairo's upscale neighbourhood of Maadi.

The three accused, along with other defendants, were found guilty of embezzeling an estimated $17.6m that were meant to renovate presidential palaces, but were instead spent on upgrading the family's private properties.

The three were also fined $2.9m and ordered to reimburse the embezzeled amount to the state treasury, the AP news agency reported.

In June 2012, Mubarak was sentenced to life in prison for involvement in the deaths of hundreds of people during the 18-day protests, but the verdict has been challenged.