The state-run Middle East News Agency (MENA) reported that the order took effect from yesterday.
Transmission ended around an hour after that announcement and as troubles escalated the BBC World Service condemned "deliberate assaults" on its journalists.
An Al Jazeera spokesman said that the company would continue its strong coverage regardless.
"Al Jazeera sees this as an act designed to stifle and repress the freedom of reporting by the network and its journalists," the broadcaster said in a statement.
The move to close Al Jazeera brought immediate condemnation from journalistic organisations across the globe, including from the Association for International Broadcasting, the Committee to Protect Journalists and Reporters Without Borders.
"This totally archaic decision is completely in contradiction with President Hosni Mubarak's promise of 'democratic' measures on 28 January,"reporters Without Borders secretary-general Jean-François Julliard said.
The move to block Al-Jazeera came as violent protests on the streets of Cairo against the 30 year reign of President Hosni Mubarak stretched into a seventh day.