Mr Debua had held discussion with his party leaders and some ministers on Tuesday night, during which he was suggested to tender his resignation, a report published in The Kathmandu Post, a Nepal daily, said.

He is likely to make an address to the nation about the achievements made during his eight-month tenure and announce his resignation.

Mr Debua was elected to the post for the fourth time on June 6 last year.

The Prime Minister's decision comes after Election Commission prepared to hand over results of the House of Representatives (HoR) elections to President Bidhya Devi Bhandari.

The left alliance, comprising the CPN-UML and CPN (Maoist Centre), which has secured a majority vote in the elections, is expected to form the next government. 

While the unification process of the two left parties is said to be in advanced stage, it is yet unclear whether the next government would be formed before the unification. 

Senior UML leader Jhala Nath Khanal said,"Our objective is to form the government in a few days after declaring party unification."

The unified party may not form the government as per Article 76 (1) of the constitution. As per this article, the President shall appoint the leader of a parliamentary party that commands a majority in the HoR as prime minister. 

As no political party has a clear majority in the HoR, the UML and Maoist Centre will have to go for the government formation as per Article 76 (2). In this case, the President shall appoint a member of the Lower House as prime minister who commands a majority with the support of two or more parties.