U.S. intelligence indicates "a strong likelihood" that Egyptian President Hosni Mubarak is on his way out and may step down as early as Thursday night, CIA Director Leon Panetta told Congress.

Panetta said he didn't know specifics, but said it seemed likely that Mubarak would turn over powers to his vice president, Omar Suleiman. Panetta made the comments in testimony before the House Intelligence Committee as Egyptian state TV said the embattled president would speak to the nation Thursday night from his palace in Cairo.

Sameh Shoukry, the Egyptian ambassador to the United States, told The Associated Press in Washington it was "a fluid situation" and that "there are indications that something extraordinary is about to happen."

President Barack Obama monitored the developments aboard Air Force One on his way to an event in Michigan. "We're going to have to wait and see what's going on," the president told reporters during a stop at a diner in Marquette, Mich.

House Intelligence Committee Chairman Mike Rogers of Michigan asked Panetta about news reports that Mubarak was poised to relinquish power.

"I got the same information you did, that there is a strong likelihood that Mubarak will step down this evening, which will be significant in terms of where the hopefully orderly transition in Egypt will take place," the CIA director said. Panetta did not say how the CIA reached that conclusion.

State TV said Mubarak will speak to the nation Thursday night from his palace in Cairo.

Egypt's military announced on national television that it had stepped in to "safeguard the country" and assured protesters that Mubarak will meet their demands. That was the strongest indication yet that the longtime leader had lost power.

Panetta said the CIA was following the developments "very closely."

He said if there is an orderly transition in Egypt that leads to free and fair elections, and includes elements of the opposition, "it could have a positive effect with regards to that area."

"There is no question that what we are seeing happening in Egypt will have tremendous impact. If it's done right, it will help us a great deal in trying to promote stability in that part of the world. If it happens wrong, it could create some serious problems for us and for the rest of the world," Panetta said.

Panetta later told reporters that, while "we've received indications that he (Mubarak) was going to make these remarks" to announce he was stepping down, "we haven't been able to confirm that he in fact is going to do that, so we're just monitoring the situation right now."

Director of National Intelligence James Clapper, who appeared with Panetta before the same committee, told the panel that the terror syndicate al-Qaida and the Islamic hardline groups Hamas and Hezbollah are also paying close attention to the unfolding events in Egypt.

"They are watching and observing this just as we are and are looking for opportunities perhaps to exploit or further their interests," Clapper said.

In testimony to the House Foreign Affairs Committee, Steinberg also sought to quell talk of divisions within the administration over Egypt. He said that the U.S. has said publicly and privately that a peaceful and orderly transition to democracy must begin without delay.

White house spokesman Robert Gibbs told reporters traveling with the president, "We're watching, I think, a very fluid situation. What we're looking for and what the president spoke about many days ago remains our priority: an orderly transition to a free and fair election."

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Associated Press writers Erica Werner and Barry Schweid contributed to this report