"The inauguration is no longer going ahead (on Sunday) as planned", Justice Minister Ziyambi Ziyambi told AFP.
However, the announcement by Ziyambi was made on Thursday, before Chamisa had officially challenged the result.
Despite the contentious election result, the state-owned Herald newspaper has reported that President-elect Emmerson Mnangwagwa will be inaugurated on Sunday, 12 August.
Judges must rule on the case within 14 days and could declare a victor, call another election, or order a run-off or recount, the Veritas legal group said.
MDC leader Nelson Chamisa says he has evidence to show that he was cheated out of the 30 July presidential vote.
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Ms. Nauert said the U.S. government is also gravely concerned by credible reports of numerous detentions, beatings, and other abuses of Zimbabweans over the past week, particularly targeting opposition activists.
By narrowly winning more than 50% of the vote Mr Mnangagwa, a member of the ruling Zanu-PF party, avoided a run-off election against Mr Chamisa.
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"We have a good case and cause!" he tweeted shortly after filing the challenge.
The opposition MDC lodged a legal challenge to last weeks election, alleging widespread irregularities.
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The legal team include Zanu-PF Secretary for Legal Affairs, Paul Mangwana, a veteran lawyer.
Mr Biti is the first senior opposition politician to be detained since Mr Mnangagwa took over from Mr Mugabe.
Diplomats and election observers were present at the court hearing in Harare after Biti fled to Zambia but was handed back to Zimbabwean police despite claiming asylum.
"Zimbabwe faces a awful threat from a group of people that has no respect for the law", Biti, who was granted bail Thursday, told the court before his case was adjourned until next week.
Consequently, Chamisa wants the chief elections officer compelled to publish in the Government Gazette the order and the declaration of the election of Mr Chamisa to the office of the President of Zimbabwe.
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He said, the "unlawful act, which was done without the knowledge of the Presidency, is condemnable and completely unacceptable". Magu, however, was seen rushing out at about 4:40pm, State House Correspondents, tried to catch up with him for an interview.
They said they were "deeply disturbed by continuing reports that opposition supporters are being targeted by members of the Zimbabwean security forces".