"Our People's Liberation Army will not carry out any offensive military action during this period and will remain defensive," rebel chief Prachanda said in a statement.

"Our party believes that this declaration will highly respect the aspiration for the constituent assembly, a democratic republic and peace that is seen on the street."

The rebels have been fighting to overthrow Nepal's monarchy since 1996 and at least 13,000 people have been killed.

They have a loose alliance with mainstream political parties which are to form a new government after King Gyanendra gave in earlier this week to almost 20 days of crippling street protests and reconvened the dissolved parliament.

A senior political leader welcomed the rebels’ announcement, saying that the incoming government would likely join the truce. He said if the intentions of the rebels were honorable, it was a good thing and the government would reciprocate.

Reuters