Nepal PM to dump cabinet

The two main opposition parties - Nepali Congress and the Communist Party of Nepal-United Marxist Leninist (CPN-UML) - negotiated with Mr Bhattarai on Wednesday and confirmed that they would join his new government.

The agreement, once reached, is expected to help ease political confusion in the republic, where the Constituent Assembly elected in 2008 has until May 27 to finalise the new constitution.

The assembly, elected to a two-year tenure, has been repeatedly extended, but the Supreme Court has ruled that no more extensions are possible.

CPN-UML official Ishwar Pokhrel said: "It is necessary to form the national consensus government to finish the new constitution, complete the peace process and successfully pass the transitional phase.

"That is why we decided to get together in the new government."

Mr Bhattarai, deputy leader of the Unified Communist Party of Nepal-Maoist, had formed the government last year with the support of smaller political parties in parliament.

It is yet unclear whether a coalition government will be able to finalise the constitution by the deadline. The main sticking points include the number of federal states that Nepal would have and who would be the executive head of the country.

The new constitution was a key part of the peace process that began in 2006 after the Maoists wound up their armed revolt against the former monarchic regime.