The President's Rule imposed in Nagaland over two months ago was revoked on Wednesday, paving the way for the formation of the next government.

The decision was taken at a meeting of the Union Cabinet, chaired by Prime Minister Manmohan Singh [Images] on Wednesday morning.

President's Rule was imposed in the state on January three.

The Democratic Alliance of Nagaland has staked claim to form the government on March nine with unconditional support of four independents.

Two legislators each from the Bharatiya Janata Party and the Nationalist Congress Party and four independents on Wednesday reposed their faith and support in the DAN. They said they had voluntarily joined the alliance as per the pre-poll understanding.

The Congress has decided not to stake claim to form the government in the state but sit in the opposition. The party has re-elected I Imkong as leader of its legislature wing.

The CLP meeting held on Tuesday decided that Congress, which secured 23 seats, eight short of majority in the 60-member assembly, would sit in Opposition at this juncture.

The Congress' hopes of making a last-ditch effort to stake claim for power was dashed after four independents and two NCP legislators yesterday extended support to the leadership of former chief minister and NPF leader Neiphiu Rio.

The NPF-led DAN paraded 33 legislators, including four independents, before Governor K Shankararaynan on Sunday while staking claim to form the government.