Nepal's multi-party transitional government has decided to nationalise major royal properties inherited by King Gyanendra.
The king's powers have been whittled away
The properties include the Narayanhiti Royal Palace in the capital, Kathmandu, and six other historic palaces around the country.
The government says that some of those listed are archeologically significant.
It is the latest setback for the king, who has already been stripped of most of his powers and prerogatives.
He is no longer head of state or army chief, following a historic peace pact with rebel Maoists and political parties earlier this year.
The monarchy itself remains suspended under the present constitution.
"The cabinet meeting decided to nationalise seven palaces being used by the king. The process of registering those palaces under the name of the government of Nepal will proceed soon," culture minister Prithvi Subba Gurung told the AFP news agency.
However officials say that the king - who is regarded by his supporters as the living incarnation of a Hindu deity - will be allowed to keep those properties he owned before coming to the throne in 2001.
He became king after the massacre of his brother and most of the royal family by a drunken crown prince who later killed himself.
The future of the 238-year-old Shah dynasty will be decided in November in elections to vote for a body to rewrite Nepal's constitution.