Nepal's ruling seven political parties Sunday agreed on the Maoists' demand for the immediate declaration of a republic, paving the way for the Maoists to rejoin the government, DPA reported. The agreement also resolved four months of political deadlock which led to the postponement of a key election in November. The agreement came after hectic political consultations involving the main political parties as well as civil society and various ethnic groups whose support is essential to hold the elections by mid-April. "The seven parties have reached a 22-point agreement to resolve the political deadlock," Nepali Congress' Arjun Narsingh K C said. "This agreement has ended the political deadlock seen in the country following the Maoists' withdrawal from the government over the demands," K C said. "This will probably allow the Maoists to rejoin the government," he said The agreement calls for 58 per cent of the 601 seats of the constituent assembly to be decided through proportional representation and the rest to be contested directly. It also calls for the current interim parliament to pass a resolution to declare the country a republic, but will only come into effect once the elected constituent assembly ratifies the issue. The agreement was a compromise for both Prime Minister Girija Prasad Koirala's Nepali Congress and the Maoists.