"We have come here for a third time (to negotiate) and publicly we are saying that we will not go back to war," Prachanda told AFP in an exclusive interview in Kathmandu.

The rebels and the recently reinstated government have been observing a ceasefire for over two months, and are due to hold a second high-level round of peace talks in the next few days.

The two sides have twice previously been engaged in peace negotiations -- in 2001 and 2003 -- in a bid to end the Maoist insurgency launched in 1996 and aimed at installing a communist republic in the Himalayan state.

But on both occasions talks broke down and the country was plunged back into conflict.

"This time the situation has changed. Everybody has agreed to conduct constituent assembly elections," said Prachanda, whose real namne is Pushpa Kamal Dahal.

Nepal's new government and rebels reached a landmark agreement earlier this month, and the rebels are set to join an interim government after the framing of an interim constitution.

"Another point is that the Nepali masses have shown their ability to fight against feudalism," the rebel leader said.

While a return to war might be out of the question even if peace talks break down, he said in response to a question, the Maoists could appeal for a repeat of the massive people's movement that saw Nepal crippled for 19 days in April and forced King Gyanendra to end his 14 months of direct rule.

"We may appeal to the people for a peaceful movement. Not just 19 days but if necessary 29 or 39 will be there but we will not go back to war," said Prachanda, who launched an insurgency in Nepal 10 years ago that has cost more than 12,500 lives.

The government has agreed to the key rebel demand for election to a body that will rewrite Nepal's constitution permanently, and likely remove the king from politics permanently.