Chamisa has claimed he won 56 percent of votes and called the election "fraudulent, illegal and illegitimate".
"For now it has been stayed pending determination of the court challenge", Zimbabwe's Justice Minister Ziyambi Ziyambi, said.
By narrowly winning more than 50% of the vote Mr Mnangagwa avoided a run-off election against Mr Chamisa.
However, the announcement by Ziyambi was made on Thursday, before Chamisa had officially challenged the result.
The MDC must prove that any irregularities were grave enough to change the outcome of the vote.
Mr Chamisa wants the court to declare him the victor or call a fresh election, his lawyer told Reuters news agency on Friday.
"We have a good case and cause!" he tweeted shortly after filing the challenge.
Mnangagwa, who took over after a military intervention in November 2017, had vowed the first elections after the conclusion of Mugabe's 37-year rule would be free and fair.
The polls' aftermath has been marred by allegations of a crackdown on opposition members, including beatings and arrests.
This was the first time in 15 years European Union observers had been allowed into Zimbabwe to observe an election which was peaceful on polling day but marred by violence afterwards.
The opposition party has demanded either fresh elections or the instalment of their candidate, Nelson Chamisa, as president.
The Court has ordered that Mr. Biti is to surrender passport & title deeds and report twice a week to police, not to interfere with witnesses or address political gatherings.
Prosecutors accuse him of fuelling illegal protests by rejecting Mr Mnangagwa's victory in the fiercely contested elections.
The US diplomat said the global community, the US included, will continue to make sure that everyone following up on Biti's case was going to respect the opposition politician's "physical integrity, the human rights and constitutional rights and that the constitution of Zimbabwe is respected".