The radical cleric who was leading resistance to Pakistani government troops at the Red Mosque in Islamabad has been killed.
Abdul Rashid Ghazi died in crossfire between militants and security forces after Pakistani troops stormed Lal Masjid complex at dawn.
Militants, accompanied by women and children, had mounted a last stand in the basement of the mosque.
An Pakistan interior ministry spokesperson said that the cleric had asked to surrender, but emerged with up to five militants who continued to fire at the surrounding troops. The troops responded and Mr Ghazi was killed.
Army spokesman Major General Waheed Arshad said they had been making repeated announcements telling the mullah that if he surrendered nothing would happen to him.
At least 50 militants and eight Pakistani soldiers have been killed during the siege at the Lal Masjid in Islamabad, which began following clashes on 3 July.
Pakistan's military earlier rescued a number of women and children from mosque.
Officials had said that many women and children were being held as human shields inside the compound. But Mr Ghazi and other mosque officials had denied that any were there against their will.
Heavy loss of life among women and children would have serious repercussions for President Pervez Musharraf, who had been under pressure to confront the militants for some time.
The Red Mosque has been a centre of militancy for years, known for its support for the Taliban and opposition to Mr Musharraf's backing for the US.
Military authorities have said they expect the operation to secure the mosque to continue through the night.