This is the second time the the splinter faction of the Nepal Communist Party has instructed its ministers in the Oli government to resign from their post.
Both Oli and the rival group claim to control the Nepal Communist Party and the issue is being disputed at the Election Commission.
Prachanda has been making efforts to garner support from the opposition Nepali Congress and Janata Samajbadi parties in an apparent bid to oust K P Sharma Oli from power.
The Prachanda-led faction on Monday dropped a letter at the Prime Minister's residence in Baluwatar.
The demonstration mobilization committee led by Spokesperson Narayan Kaji Shrestha will announce the second phase of protest programs amid a press meeting.
China is not happy with the split in the largest communist party of Nepal, and is trying to patch up differences between the two warring factions of the ruling party.
The ruling Nepal Communist Party was a post-poll marriage of convenience of their individual parties for power in 2018.
The meeting at Prachanda's residence in Khumaltar - which lasted for about 30 minutes - dwelt on the contemporary political situation after the NCP split, My Republica newspaper reported.
Prachanda said that his first priority would be to restore the dissolved House of Representatives and form a new government.
PM Narendra Modi meets ex-Nepal premiers Prachanda, Sher Bahadur Deuba and other political leaders
Modi met the leaders from a cross-section of Nepal's political parties, a day after holding extensive talks with Nepal Prime Minister K P Sharma Oli.