The Nepalese government and Maoist rebels reached an agreement shortly after midnight Wednesday that would allow the rebels to join an interim parliament and government by the end of November, a key government negotiator said.
Nepal's parliament on Saturday took action to further strip King Gyanendra of power, with lawmakers unanimously endorsing a regulation saying the king has no say in passing bills, according to a parliament spokesman.
Nepal's new government has recalled 12 ambassadors who were appointed by King Gyanendra and revoked all royal appointments to government corporations and state-owned institutions, the Home Minister announced Sunday.
Nepalese politicians have returned to Parliament for the first time in four years following weeks of bloody protests and political turmoil that eventually forced the king to hand power back to elected officials.
Nepal's seven-party opposition alliance called off a massive protest planned for Tuesday, replacing it with a "victory rally" following the king's decision to restore democracy in the Himalayan kingdom.
Celebrations have replaced protests in the streets of Nepal in the hours after King Gyanendra announced he was reinstating the parliament he dissolved in 2002, giving in to demands of an alliance of seven political parties that launched protests three weeks ago.
Members of the seven political parties that launched massive protests against the absolute rule of Nepal's King Gyanendra were meeting Saturday to begin the process of forming a new government, one day after the king vowed to return political power to the people.
Heavy rain and a strong police presence doused a protest Saturday by about 200,000 marchers who headed toward the palace in another show of opposition to the absolute rule of Nepal's King Gyanendra, who vowed to return political power "to the people" the day before.
King Gyanendra of Nepal told his nation Friday that he would return political power to the people, an apparent concession in the face of massive protests that have paralyzed the tiny Himalayan kingdom.
Police have opened fire on pro-democracy activists on the outskirts of Kathmandu, killing three people and injuring at least 100 others, police sources told CNN, as protests against King Gyanendra entered their third week.
Nepal's King Gyanendra came to throne in troubled circumstances -- the June 1, 2001 massacre of Nepal's royal family in which his brother, then-King Birendra, was slain by Birendra's son Dipendra in a drunken rage.
Activists are vowing to go ahead with plans for massive street protests in Kathmandu Thursday, despite an 18-hour government curfew that came into effect at 2 a.m. (8:15 p.m. Wednesday GMT) and a threat to shoot violators.
A day after his release from a 59-day house arrest, former Nepalese prime minister Girija Prasad Koirala on Saturday dismissed speculations that his Nepali Congress party would join the Maoist rebels in opposing monarchy.
More than a hundred political party workers were arrested in Nepal on Monday for staging anti-king protests, said Nepali Congress, one of the five parties opposing King Gyanendra's takeover of absolute power on February 1.
Former Nepal prime minister Sher Bahadur Deuba was freed Friday, 40 days after King Gyanendra assumed power, dismissing Deuba's government and placing a number of political party leaders in house arrest.
Hundreds of Maoist rebels have stormed a police station in Nepal overnight, sparking a three-hour gun battle that killed nine police officers and left an undetermined number of rebels dead, according to police.