Upadhyaya had tendered his resignation to Deputy Prime Minister and Minister for Foreign Affairs Krishna Bahadur Mahara on October 6.
A cabinet meeting headed by Prime Minister Sher Bahadur Deuba today accepted the resignation of Upadhyay, leaving the envoy's post vacant.
Upadhyay has filed his nomination for the upcoming parliamentary election from Kapilastu district in western Nepal as the ruling Nepali Congress candidate.
Upadhayay was appointed during former prime minister Sushil Koirala-led government in April 2015. He was recalled by the subsequent government headed by the CPN-UML's K P Sharma Oli in May, 2016 on charge of working against the country's interest.
Upadhyaya had played a key role in reducing the tension between Nepal and India, when the Himalayan country had suffered blockade on its southern border following the promulgation of the new Constitution.
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