Prachanda is likely to announce a small cabinet comprising members from Maoist party, Nepali Congress, CPN-United and Rastriya Prajatantra Party on Thursday after being declared as the Prime Minister.
Oli resined after two key ruling alliance partners - Madhesi People's Rights Forum-Democratic and Rastriya Prajatantra Party - decided to support the no-confidence motion tabled against him by the Nepali Congress following deadly protests over the new constitution.
Prachanda had led the Maoist party during the decade-long armed struggle from 1996 to 2006 and is credited with transforming the rebel movement into a political party after a 2006 peace deal.
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