The king of Nepal has announced he is to revive parliament and will reconvene it on Friday. This meets a key opposition demand.
The announcement, in a televised address, follows 19 days of violent protests and a general strike that has crippled the country after King Gyanendra's decision to sack his government and assume full control of the country.
It comes a day before a planned opposition rally in the capital, Kathmandu, demanding a return to multi-party democracy.
Meanwhile, five Maoist rebels and a Nepali soldier were killed when hundreds of rebels stormed the eastern town of Chautara overnight.
Rebels attacked a police station, district administration office, a telecommunications tower and a jail in the town.
They blocked the road about 30km short of Chautara town with fallen trees and boulders, apparently to prevent troops from rushing in reinforcements.