The Parliament is set to elect a new prime minister Saturday as decided by the advisory committee on parliamentary procedures, NepalNews.com reported Friday.
The committee also authorized House Speaker Subas Nembang to settle Dahal's Maoist party resolution against Nepalese President Ram Baran Yadav's decision to block the Dahal government's decision to dismiss the country's army chief, the report said.
"The committee has decided to resume the House tomorrow with an address of the prime minister and has also decided to hold election for the new prime minister on Saturday," Narayan Kaji Shrestha, deputy leader of the Maoist parliamentary party, was quoted as saying.
Nepal's politics have been in turmoil ever since the Maoist rebels, led by Dahal, ended their rebellion in 2006 against the state, which was then a monarchy.
The Maoists came to power in the Himalayan state after winning the most seats in elections last year. Their rule, however, has been marred by squabbling among Nepal's numerous political parties.
Dahal, also called Prachanda, quit as prime minister this month over the reinstatement of the military chief by President Yadav. The Maoists have been seeking the absorption of some 20,000 of their forces into the Nepalese military.
The caretaker Dahal government is relying on the nearly two dozen political parties for continued support in parliament to stay in power.
Western nations have urged Nepal's various parties to end their bickering and form a new government.
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