The New Nation - Internet Edition

AFP, Kathmandu

Nepal's King Gyanendra on Monday angrily denied speculation he will be heading into exile following a victory by former Maoist rebels in landmark elections.

A statement from the royal palace rejected what it said were "malicious reports appearing in sections of the national and international media in recent days against the royal palace."

"The reports referred to are about his majesty going to India," a palace source told AFP.

"He will not be going anywhere. He is not going to leave the country."

Nepal's Maoists are on track to win the largest single bloc of seats in an assembly that will rewrite the country's constitution. The vote count is expected to end on Tuesday, and the Maoists are expected to win at least 240 seats in a 601-member constitutional assembly-making them the dominant party and just short of holding an outright majority.

The ultra-leftists say they intend to abolish Nepal's 240-year-old monarchy as quickly as possible, and have called on Gyanendra to leave the palace "gracefully" rather than be forcibly evicted.

They have also warned the king of "a trial and strong punishment" if he refuses to accept life as a commoner in one of the world's poorest nations.

Gyanendra came to the throne in bizarre and tragic circumstances in 2001, when his popular brother and eight other family members were shot dead by a drunk, drugged, love-sick and suicidal crown prince.

The new monarch and his son Paras-loathed for his reported playboy lifestyle-failed to win the hearts and minds of a public that viewed the pair's survival of the palace massacre as deeply suspicious.

In 2005 he seized absolute power to fight the Maoists, but instead fuelled a wave of republican sentiment that led to mainstream parties striking a historic 2006 peace deal with the rebels, ending a decade of civil war. Gyanendra has since been stripped of all his powers, including his role as head of state and army commander.

Gyanendra has since been stripped of all his powers, including his role as head of state and army commander.

He has faced numerous demands to step down quietly, but has so far refused to do so.

Analysts say the king can still count on support from sections of the army and Hindu fundamentalists who see him as the incarnation of a Hindu god.