Koirala, one of a dwindling number of politicians in Nepal who were seen as being sympathetic to keeping the monarchy, also said the country would see "a new revolution" after key elections scheduled for November 22.

"Old remnants of feudalism must either disappear within the country or leave the country before the constituent assembly elections," Koirala said in a speech to parliament.

King Gyanendra, who was forced to end an unpopular period of direct rule last year, has seen his power crumble further following a peace deal last November between mainstream parties and fiercely republican Maoist rebels.

The looming elections will lead to the formation of a body that will rewrite the constitution, and decide whether the king -- and the two-century-old monarchy as a whole -- should stay or go.

"A new revolution will start in Nepal after the polls in November and that will focus on economic and social reforms," Koirala said in a policy speech.

"This election shall put an end to the old era and usher Nepal into a new beginning."

Nepal's Peace and Reconstruction Minister Ram Chandra Poudel also signalled that the king -- worshipped by supporters as a Hindu deity -- was on his way out.

"The task of nationalising such properties as palaces, forests, parks, heritages of historical and archaeological importance possessed by King Gyanendra shall proceed with priority," Poudel said.