It comes a day after the state dropped charges against Mr Kaunda relating to involvement in a coup plot last October.

UNIP officials said the 74-year-old politician would meet the policy-making committee to discuss the future of the party.

"Consultations have started on what should be the role of the old man (Mr Kaunda) and what the party should do now," a senior UNIP member said.

After his release on Monday, Mr Kaunda said he would call a special congress of UNIP to decide on its future and who should lead it.

Turnaround hinted

Earlier, he had vowed to continue in politics and to carry on waging a campaign of civil disobedience against what he calls the corrupt government of President Frederick Chiluba.

Mr Chiluba ousted Mr Kaunda in landmark elections in 1991, ending his 27-year presidential reign.

Presdent Chiluba: brought reign to an end

Political analysts and Western diplomats said Mr Kaunda's departure from the political arena would allow President Frederick Chiluba to embrace the former president as "father of the nation".

It is also reported that the veteran politician's family was urging him to focus on his peace foundation and rise above partisan politics.

"We want him to embrace all political parties, rise above partisan politics and help in the reconstruction of Zambia," a senior family member said.

Charges dropped

The Zambian Attorney-General announced he was withdrawing all charges against Mr Kaunda just minutes after his trial had opened.

His release sparked scenes of jubilation in the streets of Lusaka.

Mr Kaunda faced charges of knowing in advance about a plot by junior army officers to overthrow Chiluba last October.