KUALA LUMPUR, June 5 (Xinhua) -- The Malaysian head of state, King Sultan Muhammad V, has agreed to Prime Minister Mahathir's nomination of Tommy Thomas as the country's new Attorney-General (AG), said the royal palace in a statement dated Monday but was made public on Tuesday.

The king called on all Malaysians to accept the appointment and said the matter should not create conflict as every Malaysian should be treated fairly regardless of their race or religion, according to the statement.

The king also gave consent to terminate the service of former AG Mohamed Apandi Ali, who was told to take a leave of absence since Mahathir came to power. Mahathir had accused Apandi of hiding evidence regarding the investigation on the state development fund 1MDB.

It was reported earlier that Mahathir submitted only Thomas' name for the king to approve. But the royal palace had some reservations over the nomination, on concerns that a non-Muslim AG may not be qualified to protect the interests of the Muslim-majority country.

Since then, legal experts as well as Internet users, even a former chief justice, have been debating which side in the royalty-government standoff should budge.

The royal palace in the statement said the king was disappointed over some media reports lately, saying "inaccurate and negative" reports could threaten the peace and harmony of the nation.

The king's consent allayed many people's fear that Mahathir, with a strong leadership style, could derail the agenda of the newly-formed government. During his first stint as the prime minister in the 1990s, he steered several moves to limit the power of the monarch, including amendment of the constitution to remove the legal immunity of the royalty.