A senior minister says the government is likely to allow Nepal’s deposed king to live in the summer palace just northwest of the capital, Katmandu.
Peace Minister Ram Chandra Poudel says the Cabinet was meeting today to decide if Gyanendra would be allowed to move to the Nagarjung palace.
The area is surrounded by a wall and soldiers guard the forest.
This summer palace had been nationalised along with most of the royal assets by the government.
Gyanendra has been ordered to leave the main palace by next week.
He was dethroned last week by the Constituent Assembly which abolished the monarchy and declared Nepal a republic.
The assembly was elected in April to rewrite the constitution.