''I quit my post now,'' Mr Koirala said while addressing the 601-member Constituent Assembly (CA) adding that unity and understanding among parties will go on. Speaking in the Parliament the 83-year-old leader said that his happiness lies in a new constitution and prosperous future of the country. His resignation, however, will have to be officially submitted to the president, who is yet to be elected. The resignation of Mr Koirala has paved the way for the formation of new Government in Nepal, according to a Maoist lawmaker.
Mr Koirala succesfully conducted the election of Constituent Assembly after bringing the Maoists into the mainstream political path ending the 12-year-old insurgency in Nepal.
Mr Koirala, who also holds the presidency of the ruling Nepali Congress, was selected the Prime Minister after the reinstatement of the House of Representatives on 24 April 2006 following the People's Movement.
CPN-Maoist Chairman Puspa Kamal Dahal ''Prachanda'' had earlier claimed that Mr Koirala will announce his resignation at the parliamentary meeting of the Constituent Assembly (CA) due to be held on June 26.
Earlier , Mr Koirala had consulted party affiliated legal experts concerning his resignation.
The experts had advised the octogenarian leader not to resign at the present time considering the interim constitution's provisions.
The single largest party in the Constituent Assembly, CPN-Maoist has got the headway to lead the new government after the resignation of Mr Koirala.
Maoists and UML are preparing to form the next government in the Himalayan republic, excluding the major ally of the seven parties- the Nepali Congress-which led the alliance during the peace process.
The UML decided to join the Maoists-led government without the participation of NC after the Maoists said they would support UML former general secretary Madhav Kumar Nepal for the post of President.