Nepal's Parliament passed a law on Friday that increases civilian control over the army and formally strips the king of his command over the troops, officials said.
The new law ends any relationship King Gyanendra had with the army, Parliament said in a statement.
Previously, the king was supreme commander of the army, but weeks of pro-democracy protests forced King Gyanendra to give up his authoritarian rule in April and reinstate Parliament.
One of the first things the new government did after taking power from Gyanendra was to push through a resolution in Parliament that stripped Gyanendra of his command over the army. Friday's vote formalized the process.
The new law also gives the Cabinet the power to appoint and dismiss the army chief. It also calls for creation of a national security council that decides when to mobilise the army.
The council is to be headed by the prime minister and include the defence, home, finance and foreign ministers.
The bill also includes provisions to protect the human rights of the general public and allow soldiers to be tried in civil courts instead of just military courts.