President Ram Baran Yadav has asked political parties to have a new prime minister elected through 'consensus' by November 29.
The president, invoking article 38(1) of the interim constitution of Nepal, issued the directive to the political parties to find a replacement for Dr Baburam Bhattarai subsequent to his failure to hold election to the legislature as promised on November 21.
This is the latest bid to break the political deadlock in Nepal.
Yadav asked them to recommend the name of Prime Minister through consensus and form a Cabinet headed by him by Thursday, the President's Office said in a statement.
It said the President's call came as "political and Constitutional resolution remains elusive and a consensus government could not be formed despite several attempts by parties since the dissolution of the Constituent Assembly in May.
The 601-member Constituent Assembly was dissolved on May 27 without promulgating the Constitution, and the November 22 date passed without holding the polls.
Bhattarai said in his televised address to the nation yesterday that he was ready to step if a broader national consensus could be forged.
Opposition parties have launched various protest programmes, claiming that the Prime Minister's announcement of new election date of April-May was unconstitutional.
The parties have been demanding Bhattarai's resignation to pave way for formation of a national consensus government to resolve the current political stalemate.
Nepal has been run by a caretaker Maoist-led government since the collapse of the Constituent Assembly.
(With agency inputs)