To mark the end of the 240-year-old monarchy, Nepalese Premier G P Koirala will hoist the national flag during a grand function on Sunday at the Narayanhiti palace, which has been vacated by the ousted King Gyanendra.

The deposed king left the palace on Wednesday honouring the decision taken by the Maoists-dominated Constituent Assembly to abolish monarchy and declare the country a republic.

He has moved to the Nagarjuna [Images] hill resort after handing over valuables like the crown and scepter to the government.

The exit of the former king is being celebrated by observing a grand function on Sunday.

After hoisting of the national flag by Prime Minister Koirala, a tea reception will be held at the palace, which is now under government control, a Home Ministry official said.

All members of the Constituent Assembly, senior government officials, politicians, diplomats, journalists and other distinguished people are invited to attend the ceremony.

The government has already made a decision to convert the palace into a museum.