Kathmandu: CPN-UML Chair KP Sharma Oli has proposed a “functional unity” between the UML and the Nepal Communist Party (NCP) led by Pushpa Kamal Dahal ‘Prachanda’, according to sources familiar with recent discussions between the two leaders.

Sources said Oli visited Prachanda’s residence on May 31 and suggested that the two communist forces move forward through practical cooperation even if a full party merger is not immediately possible.

The meeting was reportedly the third between Oli and Prachanda since the February elections. During the last two meetings, discussions focused primarily on left unity and the possibility of closer cooperation between the two parties.

According to sources, Oli argued that a phased approach would be more effective than rushing into a formal merger. He reportedly cited the collapse of the previous Nepal Communist Party as evidence that insufficient trust building and organizational integration can undermine unity efforts.

The UML chair is said to have proposed maintaining functional cooperation until the next elections, while leaving open the possibility of a formal merger either before or after the polls.

Political observers believe Oli’s push for left unity also comes at a time when he is facing growing pressure from within the UML, where discussions on party restructuring and future leadership have intensified.

Prachanda, meanwhile, is not opposed to either functional unity or a broader merger, sources close to him say. However, he remains cautious due to organizational challenges and internal dissatisfaction within his own party.

Several senior NCP leaders, including Jhala Nath Khanal, Madhav Kumar Nepal, Bhim Rawal and Bamdev Gautam are reportedly dissatisfied with the current party situation adding to Prachanda’s political challenges.

In a significant development, discussions have also reportedly touched on the possibility of former President Bidya Devi Bhandari assuming a leadership role in a future unified communist structure.

Sources claim that both Oli and Prachanda have informally expressed openness to Bhandari serving as the coordinator of a new political formation.

Prachanda is also said to have indicated a willingness to step aside from the top leadership position, provided he remains involved through a directive or advisory mechanism.

Neither UML nor NCP leaders have publicly confirmed the reported discussions. As a result, talks on functional unity, party merger and future leadership arrangements remain at an informal stage.