In Kathmandu, Nepal's two largest parties, the Nepali Congress and the CPN-UML, have reached a midnight deal to form a new "national consensus government" in the politically fragile Himalayan nation to oust Prime Minister Pushpa Kamal Dahal "Prachanda", media said on Tuesday. .

The agreement was signed at midnight on Monday by Nepali Congress president Sher Bahadur Deuba and Communist Party of Nepal-Unified Marxist Leninist (CPN-UML) president and former prime minister K.P. Sharma Oli, and is expected to be made public on Tuesday, according to MyRepublica. reported the portal.

Deuba, 78, and Oli, 72, also met on Saturday to lay the groundwork for a possible new political alliance between the two parties, after which Oli's CPN-UML ended its association with the government led by Prachanda just four months after providing support. The Kathmandu Post newspaper reported.

The two leaders tentatively agreed to form a new government, amend the Constitution and work out a power-sharing formula, which they reportedly shared with some confidants, the report said, citing several senior leaders from both parties.

Under the agreement, Oli will lead a new "national consensus government" for a year and a half. Deuba will be the prime minister for the remainder of his term, the report said, citing a Nepali Congress leader.

Nepal has had 13 governments in the last 16 years, indicating the fragile nature of the Himalayan nation's political system.

During Oli's tenure, the CPN-UML will take control of ministries, including the post of Prime Minister and the Ministry of Finance. Similarly, the Nepali Congress will oversee ten ministries, including the Ministry of Home Affairs, he said.

According to the agreement, the CPN-UML will lead the provincial governments of Koshi, Lumbini and Karnali provinces and the Nepali Congress will lead the provincial governments of Bagmati, Gandaki and Sudurpaschim provinces.

Oli and Deuba also agreed to engage Madhes-based parties in the main province of Madhesh and committed to constitutional amendments.

The draft agreement was prepared by a four-member working group, according to the report.

It will detail the power-sharing agreement, propose amendments to the Constitution, review the electoral system, including proportional representation, change national assembly arrangements and discuss the size of provincial assemblies, according to a member of the working group.

The deal will be made public on Tuesday and Oli will reclaim the prime ministership later in the day, a CPN-UML minister said.

Differences between Oli and Prime Minister Prachanda had been growing steadily, and Oli was unhappy with the recent budget allocations made by the government for the fiscal year 2024-25, which he had spoken about publicly.

Concerned about the closed-door meeting between Deuba and Oli, Prachanda had gone to meet Oli to assure him that the government is serious about addressing the issues raised by the CPN-UML, including its concern over the new budget, they said. the observers.

During his meeting on Monday morning, Oli allegedly asked Prachanda to support him by resigning, the report said.

Prachanda offered Oli the post of prime minister within the current ruling coalition, which he rejected, expressing his desire to lead a consensus government, a CPN-UML leader was quoted as saying.

The Nepali Congress has 89 seats in the 275-member House of Representatives, while the CPN-UML and the CPN-Maoist Center have secured 78 and 32 seats, respectively.

Prachanda, 69, won three votes of confidence in Parliament during his one-and-a-half-year term.