CPN-UML has said that Prime Minister (PM) Pushpa Kamal Dahal should resign immediately.
The parliamentary party meeting held Sunday morning has appealed PM Dahal to resign immediately.
PM Dahal is preparing to take floor test during the House meeting on July 12.
UML Chief Whip Mahesh Bartaula has said that UML will vote against PM Dahal during the floor test if he does not resign.
The party has also urged the government to not take any decision pointing that it has already lost majority after UML and Janata Samajwadi Party withdrew support.
The largest party in the ruling coalition led by PM Dahal withdrew its support on Wednesday after Dahal refused to resign even after formation of a new coalition while UML has also recalled its ministers from the Cabinet.
Nepali Congress (NC) has also urged PM Dahal to pave the way for formation of new government by resigning but he has decided to not resign and take the floor test instead.
UML Chairman KP Sharma Oli and NC President Sher Bahadur Deuba signed a seven-point agreement Monday night but the points have yet to be made public.
There are reports that the points include pledge to reform electoral system and system of governance among other things.
UML and NC will take turns to lead the government for the remaining term of the House of Representatives with Oli becoming the prime minister (PM) first as per the agreement. Deuba will then lead the government.
The two biggest parties in the House have agreed to form the government as per Article 76(2) of the Constitution.
The agreement means that the ruling coalition will change yet again in just four months.
The coalition between Nepali Congress (NC) and CPN (Maoist Center) had broken giving way to a new ruling coalition of the Maoists UML on March 3.
The previous ruling coalition was formed around a year before that ahead of the election for president after Dahal broke the then coalition with UML. NC, Maoist Center, JSP and Unified Socialist had then decided to revive the pre-election alliance.
Dahal had quit the pre-election alliance with NC and Unified Socialist on December 25, 2022 and became prime minister (PM) with support of CPN-UML, Rastriya Swatantra Party, RPP, Janata Samajwadi Party (JSP), Janamat Party and Nagarik Unmukti Party after Nepali Congress (NC) President Sher Bahadur Deuba refused to make him PM first.