KATHMANDU, July 18 (Reuters) Nepal's Maoist rebels are likely to extend a ceasefire due to expire in a few days to support peace talks aimed at ending an insurgency which has killed thousands, a top guerrilla leader said today.

The Maoists -- whose decade-long fight for a Communist state, has left more than 13,000 dead -- declared a three month truce in April after King Gyanendra bowed to weeks of protests, handing over power to an interim multi-party government.

With peace talks between the interim government and insurgents in progress, Maoist leaders say they hope to renew the truce which ends next weekend.

''Since the peace process is moving ahead positively I think the ceasefire will be extended,'' Ananta, a deputy commander of the Maoist army, told Reuters.

He said Maoist chief Prachanda would meet Prime Minister Girija Prasad Koirala on Friday to discuss the controversial issue of monitoring arms held by the Maoists and Nepal's army.

The rebels have said they will not surrender their arms.

The government this month called on the United Nations to monitor weapons held by both sides, but Ananta said the 36,000-strong rebels should merge with government troops under a new constitution to be prepared by a specially elected assembly.

''Until then our PLA will stay in the camps with their arms,'' Ananta said.

Last month, Koirala agreed to include the rebels in an interim government to oversee elections for the special assembly to map the country's future political set up, a key rebel demand to end the revolt.

Impoverished Nepal, wedged between China and India, should be turned into a republic -- a federation with nine autonomous regions representing the oppressed classes, nationalities and genders, Ananta said.

''Defence, foreign and monetary matters will be controlled by the central government.'' REUTERS SHB PC2015