KATHMANDU, Dec 16: Nepal’s ruling alliance and Maoist rebels on Saturday approved the draft of an interim constitution, a key step to implement their landmark peace deal ending a conflict which has killed thousands, negotiators said.

The document, an interim law that paves the way for Maoists to join a provisional parliament and government, was signed by top leaders of the alliance including Prime Minister Girija Prasad Koirala and Maoist rebel leader Prachanda.

“This is yet another major achievement for the establishment of peace in Nepal,” said Bharat Mohan Adhikary, a senior leader of the Communist-UML party, the second biggest group in the seven-party coalition.

“The prime minister will carry out the work of the head of state and the king will have no right in state affairs,” Mr Adhikary told reporters.

There was no immediate comment from the king, who has already lost most of his powers after he was forced to restore democracy in April following weeks of mass street protests against him.

Analysts said the beleaguered monarch had no choice but to accept the decision.

“There is no alternative for him. Whatever he has lost can’t be taken back under the present circumstances,” said Lok Raj Baral, chief of Nepal Centre for Strategic Studies, a private think-tank.

“Though this is a logical move after the popular movement for democracy it is significant,” he said.—Reuters