Nepalese royalist Prime Minister Surya Bahadur Thapa resigned today in the face of weeks of sustained and sometimes violent street protests by opposition groups.
"I have decided to submit my resignation to His Majesty the King, with effect from today," Mr Thapa said. "I hope my resignation will pave the way for building a national consensus and help establish lasting peace in the country."
The resignation came a day after a key meeting with international donors who pressed for democratic reforms and urged an end to a Maoist revolt in the aid-dependent country that has claimed over 9,000 lives.
Nepal has been in political turmoil since King Gyanendra fired the elected government in 2002, replaced it with a royalist administration and indefinitely postponed elections.
Opposition groups mounted daily street protests demanding the king sack Mr Thapa and restore multi-party democracy, and his departure could pave the way for fresh talks between the king and the opposition.
But much will depend on who the king chooses to replace the 76-year-old Mr Thapa, who was appointed last June.
Maoist rebels have been fighting a bloody revolt since 1996 to replace the monarchy with a communist republic.