The three-person AU group is sitting down in Cairo with a range of people in the same week that Catherine Ashton, the European Union foreign policy chief, met with current leaders, Muslim Brotherhood members and Morsy -- now held at an undisclosed location on a variety of criminal charges.
"The establishment of the Panel and its current visit to Cairo are part of the AU's efforts to assist Egypt in addressing the challenges confronting the country and ensuring that the legitimate aspirations of its people are fulfilled," the AU said in a statement.
"In so doing, the AU is acting on the basis of its relevant instruments and in the spirit of African solidarity, as Egypt's challenges are also Africa's challenges. A stable, democratic and prosperous Egypt constitutes a tremendous asset for the AU, as it strives to achieve its stated objectives."
The delegation consists of three former leaders: former Malian President Alpha Oumar Konare, former Botswana President Festus Mogae and former Djibourti Prime Minister Dileita Mohammed Dileita.
Along with Morsy, the panel met with acting President Adly Mansour, interim Vice President Mohamed ElBaradei and Gen. Abdel Fattah al-Sisi, the man who led the coup.
It also sat down with Foreign Minister Nabil Fahmy, Arab League Secretary-General Nabil Elaraby and representatives of several political movements. It plans to meet with the pope of the Coptic Orthodox Church, a women's group and diplomats.
U.S. Senate acts
The Senate on Wednesday defeated a proposal to cut off U.S. aid to Egypt. The measure was pushed by Sen. Rand Paul, R-Kentucky, after the military takeover in Egypt.
Before the vote, Paul noted that the law is clear: Aid must end to a government where there is a military coup.
But the measure, which would have shut off $1.5 billion in aid to Cairo, got the backing of only 13 senators.