Egypt's Cabinet has amended a draft counterterrorism law so that journalists would be fined, rather than jailed, for contradicting the authorities' version of any terrorist attack, the state news agency reported.

The bill, which sets up new courts for terrorism trials, was proposed after Egypt's top prosecutor died in a car bombing and 17 members of the security forces were killed by Islamist insurgents in the Sinai.

It has been condemned by rights groups for fear that it would grant President Abdel Fattah al-Sisi "absolute powers" to crush dissent.