Kathmandu  - A historic vote to abolish the monarchy was delayed Wednesday over differences between the main political parties, as thousands of people rallied in Kathmandu to welcome the declaration of republic.

The legislative session originally scheduled to start at 0515 GMT was put off till 1000 GMT and then delayed even further.

"The constituent assembly has been delayed because of difference over what powers should be given to the president, who will hold ceremonial role as the head of the state," Nepali Congress leader Pradip Giri said.

"It is necessary that we address this issue ahead of the meeting," Giri said. "Nepali Congress wants minimal powers for the president, unlike the Maoists, who want a president with executive powers."

Nepalese media reports said despite nine hours of meetings between the three largest parties, they were nowhere near agreement.

For thousands of people who waited outside the venue of the meeting, it was a frustrating wait.

Some had arrived there early in the morning but waited patiently despite the delays.

"Nepalese have been waiting for years for this moment and today our dream will be realized," 29-year-old Neera Karki said as she waited outside the assembly building Wednesday afternoon.

"The politicians will never change," Deepak Bista said venting his ire. "Such issues should have been resolved well ahead of the meeting."

Earlier Wednesday, thousands of people rallied in the capital Kathmandu chanting slogans in favour of a republic.

"Long live the republic of Nepal! Bye-bye Gyanendra," shouted jubilant supporters in Kathmandu's historic Durbar Square, which was the seat of the Nepalese king until the early 1900s.

The vote in the constituent assembly would end 240 years of monarchy in Nepal which has recently been drawn into controversy and criticism.

Media reports said the political parties were planning to give King Gyanendra 15 days to vacate the palace after the vote.

Few vehicles operated on the streets and major markets were closed.

The government has declared three days of national holiday to celebrate the assembly's decision on monarchy.

Security was tight across the city with thousands of armed police deployed.

The government also banned rallies and demonstrations around the royal palace, the venue of the assembly meeting, the king's private residence and the official residence of the prime minister. (dpa)