The United States is considering removing the Communist Party of Nepal-Maoist from the list of terrorist organisations after its stunning performance in the constituent assembly elections.

"Preparations are on to remove the CPN-Maoist from Washington's terrorism list," political and economic councilor Williams Al Martin at the US embassy in Kathmandu said, Kantipur reported.

"The US government will honour the people's verdict," he said, according to a statement issued by the Nepal Chamber of Commerce. He also expressed belief that the Maoists will alter their behaviour.

Earlier, the US ambassador to Nepal Nancy Powell had met with Maoist chairman Prachanda at the latter's residence on May 1, where the Maoist chief, during the meeting, suggested that the US government should remove the Maoists from its terrorist list.