Thai Prime Minister Prayut Chan-O-Cha, under pressure from months of street protests, yesterday survived a legal challenge over his living arrangements that could have seen him thrown out of office. 

The kingdom's nine-member constitutional court ruled that Prayut was not guilty of conflict of interest by living in an army residence after leaving the military.

"The status of General Prayut Chan-O-Cha as prime minister and defence minister remains unchanged," the head judge said.

The court ruled that Prayut's status as prime minister entitled him to live in the house even though he stepped down as army chief in 2014.

The ruling, though widely expected, is likely to inflame the protest movement that has shaken Thailand since July calling for Prayut, who came to power in a coup, to quit.

As the judgment was read out, pro-democracy protesters massed for a fresh rally at a major intersection in northern Bangkok.

The judge said the military had changed the status of the residence from an army house to an guest house in 2012 "so technically, the defendant's no longer living inside an army house".

The main opposition party Pheu Thai brought the legal challenge, which if it had succeeded would have forced Prayut and his cabinet out of office.