Kathmandu, Aug 8 - Nepal's first Maoist prime minister Pushpa Kamal Dahal Prachanda Saturday rubbished reports in a section of Nepali and Indian media that he had fallen out with India and the US because they had planned to attack China through Nepal's soil and he had opposed them.

'Don't be misled,' said the front-page denial Saturday carried in the Maoist mouthpiece, the Janadisha daily, reacting to a report in the Nepali daily Rajdhani that said India and the US had pressured Prachanda to let them use Nepali soil to attack China.

The Nepali daily also said that Prachanda had alleged that his eight-month government fell after he opposed the India-America plan. The report was also carried by a section of Indian dailies.

'The report is entirely misleading, inflammatory and groundless,' Prachanda said.

He also said that it was a ploy to damage the amiable diplomatic relations between the Maoists and their neighbours and intended to harm the ongoing peace negotiations as well as the drafting of a new constitution.