Interim President Adly Mansour has vowed to end the imprisonment of journalists, Al-Ahram Arabic news website reported. The maximum penalty in publishing infractions will now be a fine.
The new law will be referred to the president's legal advisor for formulation.
Mansour met with a Journalists Syndicate delegation on Wednesday to discuss a number of issues including the jailing of journalists.
According to syndicate member Hisham Younis, Egypt's interim leader said, "As a judge, my conscience does not allow me to imprison those who disagree with me. The laws restricting freedoms implemented by the last two regimes should be abolished."
The syndicate issued a statement in March accusing Mohamed Morsi of launching a campaign of "intimidation and incitement" against journalists.
Morsi was removed by the Egyptian army last week following nationwide protests.
Interim President Adly Mansour, who was head of the High Constitutional Court, was sworn in on Thursday.