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The decision came on Monday as the Himalayan country was witnessing resurgence of the Covid-19 cases.
The nearly four-month long lockdown was lifted on July 22 and the people's movement was eased out in the country.
Nepal’s Finance and Communication Minister Yubaraj Khatiwada told The Rising Nepal, a government-owned newspaper, that domestic and international flights as well as all the public transport would be suspended till August 31.
An aide to a minister also confirmed the cabinet decision to Xinhua.
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On July 20, the Nepal's cabinet had decided to resume domestic and international flights which have remained suspended since March 22, from August 17 along with the decision of lifting the lockdown.
Earlier, the Nepal's Ministry of Culture, Tourism and Civil Aviation recommended continuing to suspend flights.
The Nepali government has also decided to enforce strict surveillance in the border areas and in Kathmandu Valley to monitor the human movement.