The Pheu Thai Party has emerged in pole position to form a new government after parliament on Wednesday rejected a bid to renominate Move Forward Party (MFP) leader Pita Limjaroenrat for a prime ministerial vote.
After more than seven hours of debate, a majority of MPs and senators voted in favour of a regulation which prohibits a motion that has been rejected by parliament from being resubmitted during the same session.
They argued an earlier motion regarding his PM nomination was already rejected by parliament on July 13 when Mr Pita failed to get the needed majority vote in the first round.
Pheu Thai has emerged as a front-runner in forming a government, and all eyes are now on whether the party will remain an ally of the MFP under the MoU they signed or whether it will seek to form an alternative coalition by bringing in parties in the outgoing government and exclude the MFP, according to observers.
The Bhumjaithai, Palang Pracharath and Chartthaipattana parties, which are part of the outgoing government, oppose the MFP's plan to amend Section 112 of the Criminal Code, also known as the lese majeste law.
They have made it clear they will not join any government if the MFP is part of it.
The next round of a prime ministerial vote will be next Thursday.
A source said Pheu Thai has now gathered enough support from Bhumjaithai, the PPRP and Chartthaipattana, with a combined number of 282 MPs to form a stable government. Most of the 250 senators, who are known to have close ties with PPRP leader Prawit Wongsuwon, are also expected to back a PM candidate nominated by Pheu Thai, the source said.