Kathmandu, Jul 14 (IANS): KP Sharma Oli, chairman of the Communist Party of Nepal (Unified Marxist Leninist) (CPN-UML) and a former prime minister, was tapped on Sunday to head a new coalition government.

"The president has appointed CPN-UML chairperson Oli as the prime minister under Article 76 (2) of the Constitution," read a statement issued by the President's Office.

Oli and some ministers shall take office on Monday morning, Kiran Pokharel, press advisor to President Ram Chandra Poudel, told Xinhua.

On Friday, Poudel called on political parties commanding a majority in the House of Representatives to form a new coalition by Sunday, and Oli staked the claim hours later with the support of the main opposition Nepali Congress party.

Prime Minister Pushpa Kamal Dahal lost the mandate to remain in power on Friday after he lost a vote of confidence in the lower house, as the CPN-UML quit and withdrew support to his coalition government on July 3 after forming an alliance with the Nepali Congress for a new coalition.