Two political parties, the Egyptian Current and Strong Egypt, have merged, the new group said in a press conference on Wednesday.
The Egyptian Current, a political party still under establishment, now falls under the umbrella of the Strong Egypt party, headed by former Muslim Brotherhood member and former presidential candidate Abdel-Moneim Aboul-Fotouh.
Both parties include former Brotherhood members or affiliated splinter groups and were formed after the 2011 uprising that ousted longtime autocrat Hosni Mubarak.
The new group said it's time to "start a new phase," use common ground and "continue the dream we have started."
It said those representing the 25 January uprising are "scattered" while youth are "disenchanted from political life, either out of asceticism, weariness or despair."
"There is no political alternative that preserves Egyptians' dignity, rejects the existence of a state within a state or the existence of any authority over the sovereignty of people or the law in the name of military or religious governance," the statement said.
Both original parties were opposed the rule of ousted Brotherhood president Mohamed Morsi – but have always referred to his July toppling as a coup.
"Our statement today is a message for independent youth who believe in the goals of their glorious revolution and its ability to change for the better," the group said.