Kathmandu: Maoist rebels have given a three-day ultimatum to the Nepalese government to agree to an Assembly that would draft a new Constitution and warned that they would consider the peace talks finished if their demands were not met.

"The Nepalese government should be prepared to declare a Constituent Assembly unconditionally within three days or else the rebels will be forced to view it as a one-way declaration of breaking away from further peace talks," chief Maoist negotiator Baburam Bhattarai said in a statement.

The rebels' ultimatum came after the Nepalese government firmly ruled out agreeing for an Assembly to redraft the Constitution and asked them to first lay down their arms.

"Unless the government agrees to our demand for the Constituent Assembly, there is no point in continuing the peace talks with the government," he said.

"We do not see any possibility on our part to compromise on our demand for Constituent Assembly elections as it is the only way to fulfil the people's requirements and address the present political imbalance." he said.

The Deputy rebel leader said the ongoing talks would cease automatically if the government declined to come up with its revised agenda by August 26.

PTI