The Iraqi government says it has reached an agreement to end weeks of clashes in the Sadr City district of Baghdad between Shi’ite fighters and American forces.
Under the terms of the truce, fighters loyal to the radical Iraqi Shia cleric, Moqtada Sadr, will begin handing over weapons from Monday.
It is understood they will be awarded compensation and political prisoners will be released.
In return the military assaults on the district will stop.
The truce is seen as a significant development as the Iraqi government prepares to hold elections next January.
