As the deadline set by the President comes to an end today, Maoist caretaker Prime Minister Prachanda said that he was "hopeful" for a consensus to emerge in a "couple of days" to form a new coalition government.
"Intense debate and discussion is going on. I'm hopeful that within a couple of days we will be able to have a new consensus and to form the new government," Prachanda said.
Prachanda's statement just ahead of the expiry of the deadline set by the President Ram Baran Yadav.
The political crisis in Nepal was sparked by Prachanda's resignation after Yadav blocked his move to sack army chief General Rukmangad Katawal.
Meanwhile, press advisor of the President today said that so far "no one has claimed to form the new government."
"If no one approached by mid-night then either the time should be extended or fresh call has to be made for formation of the government on the basis of majority support," said Rajendra Dahal, press advisor of the President.
Major political parties were engaged in hectic parleys and strategy sessions but finding a way out of the deadlock before the deadline appeared a near impossibility unless last- minute dramatic changes in the position of parties involved.
CPN-UML yesterday decided that it would form a new government with the support of Nepali Congress and other parties.