Prime Minister Sher Bahadur Deuba is likely to resign from his post on Wednesday.
A minister said Deuba's decision comes after Election Commission prepared to hand over results of the House of Representatives elections to the President on Wednesday.
Deuba had held discussions with party leaders and some ministers on Tuesday night. Sources said leaders and ministers during the discussion suggested Deuba to tender his resignation.
Deuba is likely to make an address to the nation about the achievements made during his eight-month tenure and announce his resignation.
He was elected to the post for the fourth time on June 6 last year.