Maoist supremo Prachanda on Friday said the Maoists would "adjourn all our aggressive activities" from October 2 to 10 as residents flock to their home villages to celebrate the post-monsoon festival Dasain.

But the Maoists, who ended a ceasefire on August 27 after seven months, warned it would end the temporary truce if the army used the occasion to attack the rebels.

Information Minister Kamal Thapa, the government spokesman, would not say if security forces would also observe a holiday ceasefire.

"The government has never declared a war. Whatever the government has done is to contain the violence," Thapa told reporters.

"We welcome the ceasefire," he added.

Finance Minister Prakash Chandra Lohani said the Maoists should try to relaunch negotiations during Dasain, which celebrates the victory of the goddess Durga over the forces of evil.

"What the government wants is a permanent ceasefire again," said Lohani, who with Thapa led the team that unsuccessfully negotiated with the Maoists this year.

"In the last round of talks we told the Maoists that even if they had differences they should honor the ceasefire, but they abruptly ended it. Now is a time to work again for a permanent solution," Lohani said.

The Maoists have been fighting since 1996 to overthrow the monarchy and establish a communist state. Since the end of the truce at least 265 people have died in renewed fighting, according to government figures.