The Court of Cassation also ordered on November 22 that the 65-year-old be retried for allegedly conspiring to commit terrorist acts with foreign organizations to undermine national security.
Last week, the same court annulled a death sentence against Morsi in a separate case revolving around a mass prison break during the 2011 uprising that toppled longtime President Hosni Mubarak.
However, the former president remains in jail on separate convictions.
In 2012, Morsi became Egypt’s first democratically elected president before he was ousted by the military a year later following street protests against his rule.
He was immediately arrested and his Muslim Brotherhood movement banned.