Koirala told AFP he had agreed to resign following a meeting between his Nepali Congress (NC) and three other parties earlier today. Koirala, who was appointed Prime Minister on April 12 heading a minority NC government, constitutionally needs to resign and be reappointed to the post to head any future coalition government.

``This is the best solution to solve the present political crisis in Nepal,'' Koirala said.

He said the NC's three coalition partners would be the Nepal Communist Party-United Marxist and Leninist (NCP-UML), the Rightist National Democratic Party (NDP) and the pro-India Nepal Goodwill Party (NGP).Koirala said he would lead the coalition government to the next general elections, which may be called at the end of March.

He said the coalition now implied that the question of a no-confidence motion sought by the NCP-Marxistand Leninist (NCP-L) ``does not arise''. A special session of the Pratinidhi Sabha, the Lower House, has been summoned by the King from December 24, as requisitioned by 62 opposition MPs, to censure the premier.

The NCP-ML, with 40 MPs, broke with the NC on December 10 saying Koirala had failed to keep promise made when the two joined hands in August.The Nepalese constitution says at least 103 votes are required to topple a government or form a new one, but so far the NCP-ML has managed to garner the support of only 68 MPs. The NC has 87 seats in parliament, the NCP-UML 46, NDP 19 and NGP three.

Koirala, who had sought dissolution of parliament and general elections for March 31, said he may move for another date.

The NCP-UML was seeking the cabinet posts of Deputy Prime Minister, Home, Finance and Communications, said an NC source requesting anonymity.