The ancient city, dating back to first dynasty period in Sohag province,is likely to to have housed high-ranking officials and grave builders, according to experts. Huts, iron tools, pottery remains and 15 huge graves have discovered so far.
"The size of the graves discovered in the cemetery is larger in some instances than royal graves in Abydos dating back to the first dynasty, which proves the importance of the people buried there and their high social standing during this early era of ancient Egyptian history" the ministry said.
The discovery could grant new perceptions into Abydos, Egypt's capital towards the end of the predynastic period and during the rule of the first four dynasties, the ministry stated.
The discovery, made 400 meters away from the New Kingdom period memorial Temple of Seti I across the Nile from present day Luxor, could be a boon for Egypt's ailing tourism industry, that is struggling to recover since the bombing of a Russian plane carrying 224 people from a Red Sea resort in October 2015.
