Chief Minister of Bagmati province, Bahadur Singh Lama, has resigned from his post.
Lama announced his resignation at a press conference on Sunday.
He said that he stepped down following the request of party President Sher Bahadur Deuba.
"As party President Sher Bahadur Deuba had requested to consider the recent developments within the party and pave the way for running the government through mutual understanding, I, as a loyal soldier of the party, will submit my resignation as chief minister to the Office of the Province Chief today," he said.
On July 30, Indra Baniya was elected as the leader of the Nepali Congress parliamentary party in Bagmati.
In the election, 22 lawmakers voted for Baniya, while 14 voted for Lama. One vote was declared invalid.
The Nepali Congress has 37 lawmakers in Bagmati.
Despite losing the election for parliamentary party leader, Lama had refused to resign as chief minister, stating that there is no constitutional provision requiring the chief minister to be the party leader.
Deuba had then called Lama to Kathmandu for discussions.
After the meeting with Deuba, Lama agreed to resign as chief minister.
During the meeting, Deuba had suggested that since the parliamentary party leader election had already taken place and Indra Bahadur Baniya had been elected as the party leader, it would be appropriate for Lama to step down as chief minister to clear the way.