Sri Lankan President Mahinda Rajapakse will announce a presidential election on Monday, a local English newspaper on Sunday quoted "very well informed sources" assaying.

However, it was not clear whether it would be a mere announcement of an election or a formal declaration which would start the process of fixing a date for the election in terms of the constitution and the Presidential Elections Act, said Sunday Island.

"Tomorrow's announcement/declaration is most likely to be made at an astrologically propitious time," said the newspaper.

Such an announcement will end the suspense of what will come first - a presidential or parliamentary election with both possibilities having been earnestly considered by the president and his inner circle since former Army Commander General Sarath Fonseka factor was emerged.

Fonseka, who was transferred from the position of Army Commander to a largely ceremonial position of Chief of Defense Staff in July, resigned his office on Monday among speculation that the opposition parties will field him as their common candidate in a presidential election.

According to Sri Lanka's elections calendar the next parliamentary election would be held before April 2010. Rajapakse's tenure will end in 2011 but the government wants to hold an early presidential election to capitalize on its victory against Tamil Tiger rebels in May.

Rajapakse's plans to call an early election has been upset by the opposition parties' attempt to field Fonseka who was equally credited for military success over the rebels.