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All five ministers representing the CPN (Maoist party) handed their resignations to their leader Prachanda, who helped his rebels win the most seats in the April constituent assembly elections. The elections were part of the peace initiative ending the decade-long Maoist rebellion waged to abolish the 240-year-old monarchy. Prachanda is likely to become prime minister in the new government.

The multi-party interim government, formed to prepare for the elections, is led by Prime Minister Girija Prasad Koirala, whose Nepali Congress party was defeated.

Forest Minister Matrika Yadav said the ministers quit to pave the pave the way for a new government, Nepalnews.com reported.

Prachanda and Koirala have been holding talks on power-sharing, but talks have bogged down over the composition of the new government and when it will be formed, the report said.

The latest development comes after King Gyanendra and his family vacated their sprawling Kathmandu palace Wednesday, the final act in ending the Himalayan nation's Hindu monarchy.

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