Istanbul's mayoral election was affected by "organised crime and serious corruption", Turkish President Recep Tayyip Erdogan says.
Mr Erdogan was defending the decision to re-run the 31 March vote, which returned a slim win for the opposition.
Opposition candidate Ekrem Imamoglu, who has been stripped of his duties, described the move as "treacherous".
The European Parliament also said the decision would end the credibility of democratic elections in Turkey.
The decision to hold a new vote, which will be held on 23 June, sparked protests across the city on Monday. Hundreds of people gathered in several districts, banging pots and pans and shouting anti-government slogans.
The opposition sees the move by the electoral authorities as bowing to Mr Erdogan's pressure, says the BBC's correspondent Mark Lowen.
Istanbul's Governor Ali Yerlikaya has been assigned as the acting mayor of the city until the new vote.
What did the president say?
Speaking at a parliamentary meeting of his AK Party, Mr Erdogan said that re-doing the vote was the "best step" for the country.
"We see this decision as the best step that will strengthen our will to solve problems within the framework of democracy and law," he said.
He insisted there was "illegality" in the vote and said a re-run would represent "an important step to strengthen our democracy".
Image copyrightGETTY IMAGESImage captionPresident Erdogan said the re-run was the "best step" for Turkey
The president, who first came to power in 2003, also said "thieves" had stolen the "national will" at the ballot box, adding that if they were not held to account "our people will demand an explanation from us".
Why is the vote being re-held?
An AKP representative on the electoral board, Recep Ozel, said the re-run was called because some electoral officials were not civil servants and some result papers had not been signed.
But CHP deputy chair Onursal Adiguzel said the re-run showed it was "illegal to win against the AK Party".
Mr Adiguzel tweeted that the decision was "plain dictatorship".
"This system that overrules the will of the people and disregards the law is neither democratic, nor legitimate," he wrote.
And in a speech broadcast on social media, CHP's Ekrem Imamoglu, who was confirmed as Istanbul's mayor before being stripped of the title, condemned the electoral board and said they were influenced by the ruling party.
"We will never compromise on our principles," he told the crowd. "This country is filled with 82 million patriots who will fight... until the last moment for democracy."
A supporters' group for Mr Imamoglu urged restraint, saying: "Let's stand together, let's be calm... We will win, we will win again."
Image copyrightGETTY IMAGESImage captionEkrem Imamoglu was confirmed as the mayor of Istanbul in April
What has the international reaction been?
The European Union called for Turkey's election body to explain its reasons for the re-run "without delay".
"Ensuring a free, fair and transparent election process is essential to any democracy and is at the heart of the European Union's relations with Turkey," the EU's diplomatic chief, Federica Mogherini, said in a statement.
Germany's Foreign Minister Heiko Maas said the decision was "not transparent, and incomprehensible to us".
The French government also said the Turkish authorities needed to show "respect for democratic principles, pluralism, fairness [and] transparency" in the new poll.
What is the background?
Municipal elections took place across Turkey on 31 March and were seen as a referendum on Mr Erdogan's leadership amid a sharp economic downturn.
Although an AKP Party-led alliance won 51% of the vote nationwide, the secularist CHP claimed victory in the capital Ankara, Izmir, and in Istanbul - where Mr Erdogan had once been mayor.
In Istanbul, more than 8 million votes were cast and Mr Imamoglu was eventually declared the winner by a margin of less than 14,000.
President Erdogan was in typically conspiratorial form, slamming what he called "the dark circles, economic saboteurs and so-called elitists" who were attacking Turkey and collaborating to "rob the nation of its will".
He was never going to take the loss of Istanbul lying down. "Whoever wins Istanbul wins Turkey", he has often said. He is determined to win back the country's economic powerhouse.
But it's a strategy fraught with risk. The Turkish lira - which has lost more than 30% over the past year - has slumped again. An economy in recession can hardly cope with more uncertainty. After all, it was economic woes that lost Istanbul for Mr Erdogan in the first place.
What's more, Ekrem Imamoglu, who was formally appointed mayor last month, is gaining popularity, fast. He's reached out beyond his base and has settled into the role with ease. The re-run could widen his win - barring major irregularities against him, which many of his supporters fear.
And Mr Erdogan's own party is deeply split on the issue. His diehard loyalists believe victory was stolen. But other wings of the party accept they lost, and that rejecting the result is another nail in the coffin for what's left of Turkish democracy.
Keep these in mind as you contemplate the direction of the American government over the past 50 years and especially since the Obama election.
The Goals of Communism
(as read into the congressional record January 10, 1963, from "The Naked Communist" by Cleon Skousen)
1. U.S. acceptance of coexistence as the only alternative to atomic war.
2. U.S. willingness to capitulate in preference to engaging in atomic war.
3. Develop the illusion that total disarmament of the United States would be a demonstration of moral strength.
4. Permit free trade between all nations regardless of Communist affiliation and regardless of whether or not items could be used for war.
5. Extension of long-term loans to Russia and Soviet satellites.
6. Provide American aid to all nations regardless of Communist domination.
7. Grant recognition of Red China. Admission of Red China to the U.N.
8. Set up East and West Germany as separate states in spite of Khrushchev's promise in 1955 to settle the German question by free elections under supervision of the U.N.
9. Prolong the conferences to ban atomic tests because the United States has agreed to suspend tests as long as negotiations are in progress.
10. Allow all Soviet satellites individual representation in the U.N.
11. Promote the U.N. as the only hope for mankind. If its charter is rewritten, demand that it be set up as a one-world government with its own independent armed forces. (Some Communist leaders believe the world can be taken over as easily by the U.N. as by Moscow. Sometimes these two centers compete with each other as they are now doing in the Congo.)
12. Resist any attempt to outlaw the Communist Party.
13. Do away with all loyalty oaths.
14. Continue giving Russia access to the U.S. Patent Office.
15. Capture one or both of the political parties in the United States.
16. Use technical decisions of the courts to weaken basic American institutions by claiming their activities violate civil rights.
17. Get control of the schools. Use them as transmission belts for socialism and current Communist propaganda. Soften the curriculum. Get control of teachers' associations. Put the party line in textbooks.
18. Gain control of all student newspapers.
19. Use student riots to foment public protests against programs or organizations which are under Communist attack.
20. Infiltrate the press. Get control of book-review assignments, editorial writing, policymaking positions.
21. Gain control of key positions in radio, TV, and motion pictures.
22. Continue discrediting American culture by degrading all forms of artistic expression. An American Communist cell was told to "eliminate all good sculpture from parks and buildings, substitute shapeless, awkward and meaningless forms."
23. Control art critics and directors of art museums. "Our plan is to promote ugliness, repulsive, meaningless art."
24. Eliminate all laws governing obscenity by calling them "censorship" and a violation of free speech and free press.
25. Break down cultural standards of morality by promoting pornography and obscenity in books, magazines, motion pictures, radio, and TV.
26. Present homosexuality, degeneracy and promiscuity as "normal, natural, healthy."
27. Infiltrate the churches and replace revealed religion with "social" religion. Discredit the Bible and emphasize the need for intellectual maturity which does not need a "religious crutch."
28. Eliminate prayer or any phase of religious expression in the schools on the ground that it violates the principle of "separation of church and state."
29. Discredit the American Constitution by calling it inadequate, old-fashioned, out of step with modern needs, a hindrance to cooperation between nations on a worldwide basis.
30. Discredit the American Founding Fathers. Present them as selfish aristocrats who had no concern for the "common man."
31. Belittle all forms of American culture and discourage the teaching of American history on the ground that it was only a minor part of the "big picture." Give more emphasis to Russian history since the Communists took over.
32. Support any socialist movement to give centralized control over any part of the culture--education, social agencies, welfare programs, mental health clinics, etc.
33. Eliminate all laws or procedures which interfere with the operation of the Communist apparatus.
34. Eliminate the House Committee on Un-American Activities.
35. Discredit and eventually dismantle the FBI.
36. Infiltrate and gain control of more unions.
37. Infiltrate and gain control of big business.
38. Transfer some of the powers of arrest from the police to social agencies. Treat all behavioral problems as psychiatric disorders which no one but psychiatrists can understand.
39. Dominate the psychiatric profession and use mental health laws as a means of gaining coercive control over those who oppose Communist goals.
40. Discredit the family as an institution. Encourage promiscuity and easy divorce.
41. Emphasize the need to raise children away from the negative influence of parents. Attribute prejudices, mental blocks and retarding of children to suppressive influence of parents.
42. Create the impression that violence and insurrection are legitimate aspects of the American tradition; that students and special-interest groups should rise up and use united force to solve economic, political or social problems.
43. Overthrow all colonial governments before native populations are ready for self-government.
44. Internationalize the Panama Canal.
45. Repeal the Connally reservation so the United States cannot prevent the World Court from seizing jurisdiction over nations and individuals alike.
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