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Sir Michael Somare has been reinstated as Papua New Guinea's Prime Minister today but he is not guaranteed to lead the country as his rival, Peter O'Neill, still maintains he is prime minister.

PNG Governor-General Michael Ogio reinstated Sir Michael in a ceremony at Government House about 11am.

Somare sworn in as PM as rivals demand governor-general fronts parliament
SIR Michael Somare and his cabinet have been sworn in by Papua New Guinea's governor-general, but the political impasse continues with parliament voting to demand the governor-general swear in his rival Peter O'Neill.

In an emailed statement, Sir Michael said his 19-member cabinet had been sworn in by the governor-general on Wednesday morning.

''My coalition members have today been sworn in by the Governor-General, Sir Michael Ogio,'' Sir Michael said in the statement.

However, the Somare camp maintains the 76-year-old political veteran does not need to be sworn in because the Supreme Court reinstated him as prime minister on Tuesday.

Meanwhile, MPs loyal to Mr O'Neill passed a motion in parliament demanding the governor-general come to parliament to swear in Peter O'Neill as prime minister.

Mr O'Neill's leader of government business, Moses Maladina, also introduced a bill requiring police commissioner Tom Kulunga to ''assist'' the governor-general in getting to parliament.

The MPs also passed a motion to ban Sir Michael Somare and his cabinet from declaring themselves as the nation's government.

The MPs later passed a resolution requiring the governor-general to attend parliament at 2pm (1500 AEDT) to swear in Mr O'Neill.

''The governor general is required to be in attendance at 2pm,'' Mr Maladina said.

There were about 50 MPs supporting Mr O'Neill in parliament on Wednesday, including speaker Jeffery Nape.

Sir Michael's supporters had returned to Port Moresby's Ela beach hotel, where they have held cabinet meetings since Monday.

A heavily-armed contingent of guards were blocking the street leading up to Government House on Wednesday morning.

The governor-general's declaration was due to break a three-day political impasse sparked by a Supreme Court ruling that Mr O'Neill's August election was unconstitutional and Sir Michael Somare should be reinstated as prime minister.

Mr O'Neill has refused to recognise the court's decision, while Sir Michael has been attending cabinet meetings with members of his government held at Port Moresby's Ela Beach hotel.

Meanwhile, the nation's defence force has dismissed rumours of a military coup resulting from the political impasse.

"The defence force neither seeks, nor would accept, any part to play in the politics of this country," defence force chief Brigadier General Francis Agwi told the Post-Courier newspaper.

"The PNGDF has no political position and takes no political sides."

Mr O'Neill was elected prime minister after he and 73 other MPs voted to dump Sir Michael's government in August, but the Supreme Court declared the move unconstitutional this week and ordered Sir Michael returned to office.

Mr O'Neill, who has refused to recognise the court's decision, met with governor-general, Sir Michael Ogio, on Tuesday, after he and about 60 MPs loyal to him stormed past a police barricade to the gates of Government House.

After the short meeting, Mr O'Neill told reporters the governor-general said he would meet with Sir Michael on Wednesday before deciding who is prime minister.

Sir Michael has been attending cabinet meetings with members of his government held at Port Moresby's Ela Beach hotel.

Sir Michael Ogio - appointed Governor-General this year when Sir Michael was unquestionably the prime minister - swore in Mr O'Neill at the August 2 parliamentary sitting that elected him after Speaker Jeffery Nape ruled that the top office was vacant.

At that stage, Sir Michael - who has run the country for almost half of its 36 years of independence - had been away in Singapore for four months undergoing medical treatment.

The Supreme Court led by Chief Justice Salamo Injia ruled by 3-2 on Monday that the prime ministership was not vacant, since Sir Michael had neither resigned nor been ruled medically unfit to govern.

Sir Michael, 75, yesterday denied his health would prevent him from returning to office. "My doctor in Singapore believes that my health is as good as any. I'm well enough to be a 40 year old again," he told the ABC.

Sir Michael's claim to the prime ministership rests with the 3-2 ruling. Mr O'Neill's claim rests with his re-election yesterday by parliament, 69-0, following the judgment.