Verma, chief minister for over two years, will step down to make way for 46-year-old Swaraj, who is to be sworn in on Sunday evening, party spokesman M Venkiah Naidu told newspersons outside prime minister Atal Behari Vajpayee's residence after day-long consultations on the issue.

Though Naidu said it was the party's collective decision and that Verma was not being forced to step down, party sources had initially said he (Verma) was defiant and declined to step down. He was said to have left the meeting at Vajpayee's residence in a huff. Verma's ouster comes amidst growing criticism of his government's functioning on the price front, including onion rates, power, transport and virtual collapse of the civic services.Though law and order is still handled by the union government, his adminstration came under fire as BJP is at the helm at the centre.

Naidu said it was Verma and his predecessor Madan Lal Khurana, who proposed Swaraj's name for the chief minister-ship.

Swaraj, who also holds the portfolio of communications, was elected from the prestigious south Delhi constituency in the last Lok Sabha elections.

The decision to replace Verma came after several rounds of discussions at Vajpayee's residence in which top Bharatiya Janata Party leadership including president Kushabhau Thakre, home minister LK Advani, Pramod Mahajan and Naidu were present.

Khurana, a former chief minister and who was again in the reckoning for the post, and Swaraj were called in between for consultations.

Discussions at the top level continued even as Verma's supporters stormed the party headquarters and staged a dharna in front of Thakre's car against moves to replace Verma.

Naidu said the party has decided to fight the electionsunder the leadership of Swaraj pitting her against the Delhi Congress leader Shiela Dikshit, who is being projected as her party's chief ministerial candidate. Verma, who took over as chief minister following the stepping down of Khurana after he was named in the Jain hawala case, was said to be sulking and refused to talk to newspersons outside Vajpayee's residence.Replying to questions, Naidu said it was not true that Verma had refused to step down.

The outgoing chief minister faced more criticism in August when he declared that he would quit if law and order situation and electricity and water availability did not improve in a month's time. The dropsy deaths in August due to consumption of adulterated mustard oil added to his woes.

Khurana's tussle with his successor further intensified when Verma continued to be in office even after Khurana was discharged of hawala charges last year.