Tuesday, April 25 2006 14:31 Hrs (IST) - World Time -

Kathmandu: Nepal's seven-party alliance today decided to propose Girija Prasad Koirala, leader of the largest political party, as the new prime minister and call off the 19-day-old anti-monarchy agitation.

81-year-old Koirala, who has thrice been Nepal's prime minister, was backed by leaders of the seven political partieswho held a meeting at his house today, a day after King Gyanendra decided to revive parliament.

"The meeting has decided to form a new Government headed by Nepali Congress President and top opposition leader Girija Prasad Koirala," said Nepali Congress central member Arjun Narsingh K.C.

The alliance affirmed its road map of holding constituent assembly elections through the Parliament. The parties have held that this was required to bring changes in the constitution divesting King's powers to sack elected governments.

The Seven Party Alliance has decided to implement their road map to restore full democracy and ultimately holdthe constituent assembly election to resolve the crisis, K C said.

After the Parliament is convened, it will form an all-party government, initiate a dialogue with the Maoists and start the process of holding constituent assembly election, he said.

"The new government will move ahead as per the road map of the seven party and resolve the current political crisis, including the Maoists problem," K.C. said.

The meeting also decided to take action against those who were active in suppressing the agitation and, provide appropriate compensation to the families of those killed during the anti-king agitation.

The planned massive anti-King demonstrations will turn into victory procession and the top leaders of the seven parties will lead the rally and address the public meeting at different places, opposition leaders said.