CAIRO—Egypt's leader tried to contain the fallout from his decision last week to neutralize the judiciary and bestow nearly absolute powers upon himself, meeting with the country's top judges Monday and emphasizing that his edict was a temporary measure with limited scope.

The move didn't satisfy the judges, the opposition nor U.S. officials, who pressed President Mohammed Morsi to amend his decree, which has breathed new life into a youth movement that had become increasingly irrelevant since the toppling of the previous regime nearly two years ago. Opposition forces planned a massive protest for Tuesday.

Mr. Morsi's spokesman said the president welcomed the Supreme Judicial Council's demand that only his "sovereign decisions"—those that affect the architecture of governance—be immune from judicial review.

The spokesman, Yassir Ali, said Mr. Morsi assured the judges that he had "the utmost respect for the judicial authority and its members and takes into account its immunity and specialties." But Mr. Yasser said Mr. Morsi's edict remained in place.

After Mr. Ali's televised comments, Egypt's judge's club said they and prosecuting attorneys would continue their strike. Mr. Ali's comments "did not modify" Mr. Morsi's constitutional declaration to grant himself near supreme political power.

On Monday, Secretary of State Hillary Clinton spoke with her Egyptian counterpart, Mohamed Kamel Amr. The White House called for Mr. Morsi to negotiate with his political opposition, though Mr. Obama hasn't spoken directly with Mr. Morsi on the issue.

The State Department also hinted at the possibility that the U.S. could withhold financial aid to Cairo if Mr. Morsi doesn't give ground on his decree.

An activist who died after clashes with security forces was carried at his funeral Monday in Tahrir Square. European Photo Press Agency

The Obama administration is seeking to finalize $1 billion in debt relief for Egypt and it has backed a $4.8 billion International Monetary Fund loan to Cairo."Everybody is watching how this goes forward,'' said State Department spokeswoman, Victoria Nuland, stressing that U.S. aid is aimed at supporting democratic reforms.

A number of leading U.S. lawmakers in recent days have said they would try to restrict American financial assistance to Egypt if he goes forward with the presidential decree.

The political divide in Egypt widened, as secular and liberal opposition forces raised the pressure on President Mohammed Morsi to rescind an edict that consolidates his power and sidelines the judiciary. Photo: REUTERS.

Gamal Eid, an attorney and founder of the Cairo-based advocacy group the Arabic Network for Human Rights Information, said that Mr. Ali's statement didn't represent a climb down by Egypt's president.

"The president needed to say something about the meeting because people were waiting for the result," Mr. Eid said. "But there was no result."

Mr. Morsi's edict last week, in which he then said was temporary, has laid bare the bitter duel that has endured for months between Mr. Morsi's governing Islamist-led coalition and the political opposition as well as the judiciary over the shape of the country's new constitution. The document is being drafted by an Islamist-led council whose powers Mr. Morsi seeks to protect.

Youth movements, secular and liberal political parties and even some loyalists of ousted strongman Hosni Mubarak were gearing up for the demonstration Tuesday in Cairo's Tahrir Square, the epicenter of the protests that toppled Mr. Mubarak, to denounce what they see as a blatant power grab by Islamists.

Mr. Morsi's powerful and highly organized Islamist allies were planning a similar gathering at the same time across the Nile to rally behind the president but decided to postpone it until further notice to "avert a split in the country," according to a statement.

Tensions were high already after attacks on Islamist party offices across the country since the weekend killed a Morsi loyalist and wounded scores in northern Egypt.

Many analysts believe Mr. Morsi has left himself little room for maneuvering with any concessions, especially after a fiery speech this past Friday during which he said he was determined to forge ahead.

Mr. Morsi's move has reinvigorated youth leaders and activists, who used social media like Twitter and Facebook to fuel the anti-Mubarak movement in 2011. But the same questions that applied then remain: whether they can formulate a unified vision and strategy beyond their disillusionment with the status quo.

"He has succeeded in uniting everyone against him and what's making people even more suspicious is the exclusionist attitude of the Muslim Brotherhood, they only care about themselves," said Ahmed Maher, head of the April 6 Movement, which played an instrumental role in the 2011 uprising, referring to Mr. Morsi and the dominant party in his Islamist coalition.

Mr. Maher said he has no regrets he broke ranks with other youth leaders and backed Mr. Morsi in the June presidential elections when it came down to a choice between an Islamist and Ahmed Shafiq, a former prime minister and retired air force general seen by many as a Mubarak loyalist.

The youth leader said he has been called a "traitor and sellout of the revolution" for supporting Mr. Morsi and becoming a member of the Constituent Assembly tasked with drafting the new constitution.

He and more than 20 others on the 100-member panel resigned earlier this month over what they called bullying by Mr. Morsi's Islamist allies to force through their Islamic agenda in drafting nearly 25 crucial articles of the proposed constitution, which the president plans to put to a referendum by February.

Mr. Maher said Mr. Morsi's edict, which shields both presidential decisions and the Constituent Assembly from the judiciary, was tailor-made to pass through an Islamic constitution.He has called on all his supporters to participate in Tuesday's anti-Morsi demonstration.On Monday, Mr. Maher and other youth leaders took part in a funeral for an 18-year-old activist from the April 6 Movement who died over the weekend from a brain trauma sustained in clashes with security forces.

The body of the slain activist Jaber Salah, nicknamed Geka, was carried in an open coffin in a procession that passed through Tahrir Square and Mohammed Mahmoud Street, scene of the latest clashes. "Your blood will be the spark for a new revolution," read the caption of a fresh graffiti mural in Tahrir commemorating Mr. Salah.

Among those present at the funeral was Sally Toma, one of the leading youth activists of the anti-Mubarak uprising. She said she boycotted the June elections and considers people like Mr. Maher "sellouts" for collaborating with Mr. Morsi and the Islamists.

"Although they divided us at a point some people thought give them a chance but they did unite us now," she said referring to the Muslim Brotherhood.

Sheriff Boraie another revolutionary activist says although secular and liberal forces still differ on many issues there are signs they are rallying behind Mohammed ElBaradie, a former presidential candidate, after he joined forces with his rivals in a new National Salvation Front unveiled last week after Mr. Morsi's edict.

Shadi Ghazali Harb, a leading youth activist and member of Mr. ElBaradei's party, said the demands of the opposition now center on Mr. Morsi completely scrapping his edict but warned that if he and his Islamist allies don't back down then this could escalate into a fight to oust the president from power.

"What is unifying people is the desire to preserve Egypt's identity and prevent Islamists from hijacking the whole country," he said.

Gehad el-Haddad, an adviser to the Muslim Brotherhood and the ruling Islamist coalition, said he was alarmed at how the interests of the secular and liberal opposition appear to be coalescing with those of former regime loyalists and said his camp is determined more than ever to confront what has been described by Mr. Morsi as a conspiracy.

"There is no face-saving measure. We will persist," he said. "This is not a political tactic—this is a life-saving move that can save Egypt from the free fall it's about to enter."

Mazen Hassan, a political science professor at Cairo University, said Mr. Morsi has put himself in a difficult position and will be severely weakened no matter what course of action he opts for.

"Any compromise will certainly be not acceptable to either one of the two camps," he said. "So he's kind of between a rock and a hard place."

—Jay Solomon in Washington contributed to this article.

Write to Sam Dagher at Sam.Dagher@wsj.com and Matt Bradley at Matt.Bradley@dowjones.com