Many of those due to be released are youths who have demonstrated in recent years, Reuters reports.
Sisi, who was speaking at a youth conference in Cairo, said he ordered that all the procedures be completed so the prisoners can “eat sohour at their homes,” referring to the pre-dawn meal before the daily sunup-to-sundown fast.
In 2013, the country passed a law requiring permission for any public gathering of more than 10 people. The move effectively ended the mass protests that helped unseat two presidents since 2011.
Officials say a total of 332 prisoners will be released, including pro-democracy activists who were convicted for violating a 2013 law.
According to Human Rights groups, over the past four years, Egyptian President Abdel Fattah el-Sisi has led a security crackdown that left thousands dead, and tens of thousands more imprisoned.
He is blamed for repressing free speech, undermining civil society, and waging a failing war in the Sinai.
In its annual report, Human Rights Watch said since al-Sisi came to power, the authorities have continued to aggressively enforce a de facto protest ban and routinely dispersed anti-government demonstrations with force.