With this agreement, the long-standing dispute among the warring parties regarding the issue of new federal structure of the country to be incorporated in the Constitution has finally come to an end.
The top leaders of the ruling and opposition parties held a meeting at the Prime Minister's Official Residence in Baluwatar and reached a deal to this effect, said Deputy Prime Minister and Minister for Local Development and Federal Affairs Prakash Man Singh, who attended the meeting.
They also agreed to adopt a mixed electoral system, under which 60 per cent of lawmakers would be directly elected through first-past-the-post system and remaining 40 per cent would be elected under the proportional electoral system.
The four parties are scheduled to formalise the agreement in the evening at the Prime Minister's Office, said Nepali Congress sources.
The Constitution writing process had proved to be a cumbersome work for Nepal's ruling and opposition parties. For the last eight years, they vigorously argued their differences.
The division between the parties were mainly on over four issues which include forms of governance, names and number of federal units, electoral system and judicial system.
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