With just two days remaining for the earlier announced election date to expire, Nepal government on Tuesday decided to postpone polls till mid-April next year.
Information and communication minister Raj Kishor Yadav informed about the move after a cabinet meeting of the ruling Maoist-Madhesi interim coalition government endorsed the proposal.
He said that date for the election would be announced after consultation with all political parties.
Nepal's political parties have been at loggerheads over what course to take following dissolution of the Constituent Assembly in May without promulgating a new constitution.
The government had earlier announced November 22 as date for fresh polls to elect a new Constituent Assembly. But opposition parties have dubbed the move unilateral and refused to take part in elections.
They are also demanding removal of the government and formation of a national unity government comprising all parties.
The six-month-old crisis has affected the country's economy with ruling and opposition parties fighting over the annual budget. The one-third budget passed earlier expired last week.
Despite resistance from opposition parties the cabinet endorsed a full budget on Tuesday and forwarded it to President Ram Baran Yadav for approval.