President Bingu wa Mutharika had vowed to prevent parliamentarians from meeting for a six-week session until they agreed not to expel 70 members of his Democratic Progressive Party (DPP), which is largely made up former opposition members.

The opposition United Democratic Front is angry wa Mutharika bolted its ranks after winning the 2004 election and formed the DPP. It and another opposition party want to remove the DPP MPs under a constitutional provision -- Section 65 -- that prevents floor-crossing.

If successful, they would have enough support to pass a no-confidence vote in wa Mutharika's government as well as an impeachment motion against the Malawian leader.

"The president is asking the opposition to stop the issue of section 65 and agree that parliament meets to discuss other important matters other than the expulsion of MPs," State House press officer Chikumbutso Mutumodzi said, confirming that the sitting had been cancelled.

Malawi's 193-member parliament was to consider a number of World Bank and International Monetary Fund (IMF) programmes seen as key to the impoverished nation, which relies heavily on donor support for its public spending.

The next sitting is scheduled for June.

The parliamentarians refused last year to debate the government's $1.2 billion budget for fiscal 2007/08 until the floor-crossing dispute was resolved. Pressure from civic groups and farmers prompted a change of heart, and it was passed.

Last month the IMF said the political uncertainty could affect implementation of its programme in Malawi.

"I hope we won't have a repeat of last year because the delays last year affected implementation of the some IMF programmes, which parliament needed to approve," Finance Minister Goodall Gondwe told Reuters on Tuesday.