May 13 (Bloomberg) -- Nepal will scrap its almost 240-year- old monarchy on May 28 as a palace envoy said King Gyanendra is asking to be allowed to retain a ceremonial role with ``cultural and religious rights.''

The Constitutional Assembly will vote to turn the Himalayan nation into a republic at its first meeting, after last month's elections were won by former rebels who fought for 10 years to overthrow the monarchy. The date was announced by Prime Minister Girija Prasad Koirala yesterday, Nepalnews.com said.

Kamal Thapa, the king's unofficial envoy, met with former rebel leader Prachanda yesterday and asked him to abide by an April 2006 accord when Gyanendra agreed to give up his ``dictatorial'' rule in return for assurances the monarchy would be kept intact, Nepalnews.com reported. The rebels weren't involved in the negotiations.

Prachanda's Communist Party of Nepal (Maoist) will lead a coalition government after winning most seats in the assembly in the April 10 parliamentary elections. The party insists the monarchy must end and the king quit the palace peacefully and become a ``common citizen.''

Since the election, there have been reports that Gyanendra may consider going into exile in India. The Royal Palace issued a statement in late April denouncing such speculation as ``totally fabricated,'' Nepalnews.com reported at the time.

Animal Sacrifice

Gyanendra, 60, yesterday made his first public appearance since the elections. The king, accompanied by Queen Komal, offered five male goats for sacrifice at the Dakshinkali Temple outside of the capital, Kathmandu, Nepalnews.com reported.

Many Nepalese believe Gyanendra's family members are reincarnated Hindu gods, who created the landlocked kingdom between India and China. About 80 percent of Nepal's 26.4 million citizens are Hindu.

Gyanendra became king and began wearing the traditional crown made of yak hair and peacock feathers in June 2001, after his brother Birendra and close relatives were killed by Crown Prince Dipendra, who then shot himself.

Gyanendra's popularity began to decline after he declared martial law in February 2005 and ruled the country himself, saying the government had failed to deal with the insurgency.

The king was forced to return power to a civilian government in 2006 after nationwide strikes, as Maoist leaders declared a cease-fire and linked up with political parties in opposition to the king.

An interim administration in April 2006 stripped Gyanendra of his power, making him pay taxes and placing the army under civilian control. His image was removed from the 500-rupee banknote and replaced by Mount Everest.

More than 13,000 people were killed in the civil war, which damaged the tourism-dependent economy. The conflict ended with a November 2006 accord that provided for the rebels joining an interim government and elections being held for an assembly to draft a new constitution.

Nepal is among the world's poorest countries, according to the U.S. government. One-third of its citizens live below the poverty line and per capita GDP is about $1,100.

To contact the reporter on this story: Michael Heath in Sydney at mheath1@bloomberg.net.

Last Updated: May 12, 2008 22:58 EDT