Earlier in the day, the Election Commission (EC) had recommended the government to conduct polls on May 14.
Minister for Environment and Population Jayadev Joshi told PTI that a Cabinet meeting has taken the decision.
The election body proposed the date for local level elections during a meeting with Prime Minister Pushpa Kamal Dahal Prachanda and other members of the council of ministers.
Secretary at Election Commission Gopi Nath Mainali said that it along with the government reached an agreement on holding the local body election in a single phase.
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Earlier, the Cabinet meeting had asked the taskforce formed to study and review the report of the commission formed to restructure local units.
The commission has recently recommended the government to fix the number of local units at 719. Till date, there are nearly 4,000 local bodies.
The main opposition CPN-UML has welcomed the government's decision to conduct local body elections.
However, the agitating Joint Madhesi Front has opposed the decision.
The alliance has also announced stir beginning from tomorrow to show protest against the government decision.
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