Nepal's last king of Shah dynasty of around 240 years, Gyanendra Bir Bikram Shah Dev, has now almost become a common citizen after moving from the royal palace to his new residence on Wednesday evening.

In his first public statement in months, the former king says he will begin a new life as something akin to an ordinary citizen.

"I have no intention or thoughts to leave the country. I am going to stay in my motherland Nepal and contribute to establish peace."

Nepal's government plans to turn the palace into a museum and Gyanendra plans to move to one of his former summer palaces on a forested hill on the outskirts of Katmandu.

There, he will be protected by police but will otherwise live as any other Nepali.

Before leaving on Wednesday, he handed over to government officials his crown of peacock feathers, yak hair and jewels, along with his royal sceptre.

The Himalayan nation was turned into the world's youngest republic after the first meeting of the newly elected Constituent Assembly declared so on May 28.