Nepal's interim Prime Minister, Girija Prasad Koirala, has announced that he has resigned.Correspondents say the move paves the way for the former rebel leader, Prachanda, who heads the Maoist party, to succeed Mr Koirala.
The Maoists emerged as the biggest party in elections in April to a new constituent assembly.
The Maoists signed a peace deal in 2006, ending a decade of civil war in which thousands of people were killed.
'Unfit for office'
"I announce in this house that I have abandoned the post of the prime minister," Mr Koirala told the constituent assembly on Thursday.
Prachanda could well become prime minister
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