"Now that political conflict has arisen, I would like to ask you to decide if you want to use the services of this government again. I will respect the decision of the public, not just one group of people," Thaksin said during a televised address lasting just over 10 minutes.

"Let me return the power to you so that the public will decide again. The next election will be extraordinary. I ask my fellow countrymen to turn out in force in making this important decision," said Thaksin.

He said he had dissolved the House because of "attempts to overthrow the government by people who stand to lose their benefits".

He also blamed "those who are unhappy with the government and various political groups".

"I can't stand it when mob rule tries to override the law," he said.

Thaksin said he had consulted with "people with good intentions towards the country" before coming up with the decision.

If political uncertainties were allowed to continue, he said, the country's economy would suffer.

The premier said the House dissolution was aimed at preventing a repeat of the violence that broke out in May 1992, the impact of which is still being redressed.

He was concerned another clash could break out at a public rally scheduled for tomorrow at Sanam Luang.

Before Thaksin's address, an announcer read out a statement by the Prime Minister's Office explaining the political situation that led to the decision.

The announcement came after mounting pressure on Thaksin to bring about political change.

Just a few weeks ago, Thaksin insisted he would stay his full four-year term.

He told his political opponents and critics to "wait until their next lives" for him to step down.

Thaksin broke the news of the House dissolution to reporters waiting at Thai Rak Thai Party headquarters.

He had had an audience with His Majesty the King at the Chitralada Palace at about 5pm.

"I have dissolved the House. There's no Cabinet reshuffle," he said.

The premier was heard humming a melody when he arrived at the party headquarters, shortly after 6pm.

He patted the shoulder of party deputy spokesman Pimuk Simaroj and said: "Let's do it over again; contest a new election."

Sources said Thaksin was also considering a Cabinet shake-up as an option to break the stand-off with his opponents.

He also raised the matter when meeting with Privy Council president General Prem Tinsulanonda at the latter's house on Thursday, according to a source, who added that Prem recommended dissolving the House.

Rumours of an imminent House dissolution were prevalent earlier yesterday.

Thaksin fuelled rumours while presiding over a ceremony to mark the 90th anniversary of the Cooperative League of Thailand (CLT) in the morning.

"If you want to use me, please vote for me," he said to a cheering crowd of CLT members who convened a meeting to boost morale at Impact Arena Muang Thong Thani.

A Government House source said Thaksin decided to dissolve the House because he could not find a suitable candidate to replace him as prime minister.

Thaksin wanted a snap election to be held as soon as possible, preferably on April 2 or April 9, according to the source.

Earlier in the day, Election Commission (EC) member Prinya Nakchudtree said the agency would be able to make preparations in time for the general election to take place on April 2.

He said the EC would have to send lists of eligible voters to each household at least 20 days before election day but he was confident preparations could be made in time.

The EC yesterday announced that registration of candidates would be open from Wednesday until March 5.

Suriyasai Katasila, a coordinator of the People's Alliance for Democracy (PAD), said the group was unhappy with Thaksin's decision to dissolve the House and saw it as a selfish act.

He said the House dissolution would not solve the current problems but would allow Thaksin to seek a comeback and prolong his rule.

Suriyasai said that with the House being dissolved, tomorrow's rally would shift its theme from demanding the premier's resignation to urging people not to vote for the ruling party again.

PAD leaders will hold a meeting today to decide how to organise the demonstration at Sanam Luang, he said, adding that he believed it would not last longer than one day, as expected. The anti-Thaksin campaigners earlier vowed to "fight until we win".

Chamlong Srimuang, who has led his Dharma Army Foundation to join the anti-Thaksin campaign, yesterday said the premier should have resigned as it was him, not the House of Representatives, who was "the cause of all the problems".

"An election won't help ease social conflict. Thaksin and the Thai Rak Thai Party will be re-elected because their voter support is still strong," said Chamlong in a tired voice.