Nepal sank into political turmoil after politicians failed to agree on a new constitution, leaving the country with no legal government.

Nepal’s prime minister will resign by the end of the month to pave the way for a new constitution and new elections, an opposition source said.

Nepal’s prime minister Baburam Bhattarai has decided to dissolve his present Cabinet and form a new coalition government that would include members of the main opposition parties.

The deputy leader of Nepal’s former Maoist rebels has been sworn in as the country’s new prime minister.