Government spokesman Panitan Wattanayagorn said Monday the dissolution would take effect Tuesday.
Approval by King Bhumibol Adulyadej sets in motion a new political battle between opponents and supporters of former Prime Minister Thaksin Shinawatra, who was ousted by a military coup in 2006.
Thaksin's supporters held two months of anti-government demonstrations in the Thai capital last year that deteriorated into violence. More than 90 people were killed and 1,400 wounded.
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