The attack occurred Thursday in the Bardia district, 535km southwest of the capital Kathmandu, police said.

"Armed terrorists on bicycles shot dead three civilians," police said, adding that there was no apparent motive for the shootings.

The attack comes after the Maoist leader Prachanda said last month that the rebels would not target civilians following a landmine attack on a crowded bus in southern Nepal that killed 38 people. The rebels called the bus bombing a "grave" mistake. Rebels have stepped up attacks since King Gyanendra seized power in February. The king said the move was needed to crush the Maoist insurgency, which has claimed around 12,000 lives since 1996.