"He expected to return to Kathmandu most likely on Monday," Arjun K.Mainali, acting chief of Nepal's mission in Bangkok, said.

Koirala, 84, entered a Thai private hospital on June 19 and was discharged Thursday afternoon after the operation, he said.

"His progress after the laser surgery of the prostate has been satisfactory," the embassy said in a statement.

"He is convalescing at present at the embassy compound in Bangkok and is scheduled to have his final post-operative evaluation by specialists in the hospital on Saturday," it said.

He had been scheduled to meet with his Thai counterpart Thaksin Shinawatra on Friday afternoon, but Mainali said the meeting was cancelled after doctors told him to rest.

Koirala last week agreed to a landmark power-sharing agreement with Nepal's Maoist rebel leader Prachanda aimed at ending a 10-year insurgency that has left at least 12,500 people dead.

Under the deal, an interim government including the Maoists was to be set up within a month.

The two sides also agreed to seek UN help in arms control and to draft a temporary constitution limiting the powers of King Gyanendra, who recently bowed to mass protests and ended direct rule.

Agence France Presse