US Secretary of State for South Asia Christina Rocca held talks with Nepalese leaders on Tuesday and discussed the political situation in the Kingdom, official sources said.

Rocca's three-day visit is the first to the Kingdom by a top American official since King Gyanendra's February 1 power grab.

Her visit comes at a time when the embattled monarch is facing increased opposition at the domestic level with seven political parties joining hands to demand reinstatement of the dissolved parliament and return to democracy.

During her parleys with vice-chairmen of the Council of Ministers Tulasi Giri and Kirtinidhi Bista on Monday, Rocca urged for restoration of democratic system and civil liberties besides exchanging views on issues of bilateral cooperation, US Embassy sources said.

Rocca will meet Nepali Congress president Girija Prasad Koirala, Nepal Communist Party-UML general secretary Madhav Kumar Nepal and Nepali Congress (Democratic) acting president Gopal Man Shrestha on Wednesday, party sources said.

She will also meet Foreign Minister Ramesh Nath Pandey and Chief of Army Staff Pyarjung Thapa.

Her meeting with King Gyanendra is not yet fixed, sources at the US embassy said.