Nepal's government said yesterday it will allow the deposed king to live in a summer palace northwest of the capital after the Himalayan nation officially abolished the centuries-old monarchy last week.

The Cabinet decided yesterday to allow former King Gyanendra to move to Nagarjung palace - situated on a forested hill on the northwestern edge of Katmandu - after he was ordered to leave the main palace by next week, Peace Minister Ram Chandra Poudel said.

This summer palace - previously used for vacations by the former king - is surrounded by walls and soldiers, and has remained off-limits to the public. Only a few people have actually seen the palace, which has been nationalized by the government along with most of the royal assets.