UPDATE 1-Nepal parliament to choose new PM on Saturday

(Recasts with election date, quotes in paragraph 1, 6-9))

By Gopal Sharma

KATHMANDU, May 21 (Reuters) - Nepal's parliament will elect a new prime minister at the weekend, a spokesman said on Thursday, ending weeks of political crisis sparked by the resignation of Maoist Prime Minister Prachanda.

The announcement came a day after the United States and EU countries urged Nepal's feuding political parties to quickly form a new government.

Prachanda quit early in May after his move to fire the army chief was vetoed by the president, precipitating a crisis that threatens a 2006 peace deal after a decade-long civil war.

A bloc of 22 parties with a majority in parliament has been unable to form a new government as the former Maoist guerrillas vowed to block the process, launching street protests and disrupting parliamentary sessions.

Heads of international missions said on Wednesday that parliament must be allowed to choose a new government, in what analysts said was an appeal mainly to the Maoists to co-operate.

Parliament spokesman Mukunda Sharma said an all-party committee, including the Maoists had agreed to hold the election for the new prime minister at 3 p.m. (0915 hours GMT) on Saturday.

Senior Maoist deputy Narayan Kaji Shrestha, said Prachanda would address the parliament on Friday, resuming the regular legislative sittings, which remained disrupted since he quit early this month.