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Sushil Sharma
BBC correspondent in Kathmandu
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Analysts say the king is unlikely to respond favourably
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Nepal's Maoist rebels have made a conditional offer to accept the nation's monarchy.
A senior leader said that the rebels could accept the constitutional monarchy if the king gave up control over the army.
Krishna Bahadur Mahara made the remarks at a recent Maoist function in a remote western district.
The rebels have been engaged in an eight-year insurgency to replace the monarchy with a communist republic.
Change of strategy
Mr Mahara said that King Gyanendra had been controlling the government army.
Although a national defence council headed by the prime minister has power to mobilise the army, decisions need the final approval of the king, who is the supreme commander.
Analysts say the comments are unlikely to gain a favourable response.
They say the military has been successful in its recent offensives, which have been stepped up since the rebels pulled out of a seven-month ceasefire last August.
There has been no major rebel attack since then, although the Maoists insist that they have changed their strategy.
More than 8,000 people have died in the past eight years of Maoist insurgency.