Officials say monarch is likely to break with tradition and not attend festival.
King Gyanendra has been unpopular since he came to the throne in 2001 after a massacre in the royal palace left his brother, King Birendra, and nine other royals dead.
Gyanendra seized absolute power in 2005, saying he would bring order to a chaotic political scene and quell the Maoist insurgency that had killed nearly 13,000 people.
But the political and economic climate worsened, and widespread discontent led to nearly a month of protests across the country that ultimately forced Gyanendra to end his royal dictatorship. The king currently holds no real power.
The government has meanwhile nationalised 12 royal palaces. A government committee has also been trying to catalogue the king’s property and assets – which are said to be substantial and well-hidden.
Authorities have also cut off the king’s annual allowance of 2.7 million rupees ($500,000).