Sadr offers talks to end standoff

Sadr's militia are said to be near the Imam Ali mosque

Iraqi rebel Shia cleric Moqtada Sadr has indicated he is ready to end his month-long insurgency in Najaf if the US-led coalition agrees to negotiate.

Aides said Mr Sadr's Mehdi Army could end its rebellion in return for a withdrawal of US troops from the city.

Earlier, hundreds of people marched in Najaf calling for Mr Sadr to end his uprising to avoid civilian casualties.

Witnesses said a crowd marched to the central shrine area, where some Sadr gunmen fired shots in the air.

Mr Sadr launched an uprising against coalition forces last month and has taken refuge in Najaf.

Iraqi leaders in the holy city said the peace offer hinged on US troops pulling out of Najaf and nearby Kufa.

Under the proposal, an Iraqi force would take over security and the Mehdi Army would lay down its arms.

A similar arrangement ended a violent confrontation between US forces and Sunni militants in the central city of Falluja last month.

Peace march

The proposal came following a meeting of Iraqi political and tribal leaders in Najaf.

"Agreement has been reached on all points of contention. This agreement represents all shades of the [Shia] political spectrum," Qais al-Khazali, Mr Sadr's chief aide in Najaf, told Reuters news agency after the meeting.

Leaflets handed out by Mr Sadr's office said talks should be overseen by the Shia religious authorities.

There was no immediate response from the US.

Earlier, the new US-appointed governor of Najaf, Adnan al-Zorfi, said that if Mr Sadr disbanded his militia, murder charges against the cleric could be halted until after the 30 June handover of power.

Mr Sadr is wanted in connection with the murder of a rival cleric last year.

Tuesday's peace march in Najaf was organised by Iraq's biggest Shia party, the Supreme Council for the Islamic Revolution in Iraq (Sciri), according to AFP news agency.

The marchers called on the militiamen to evacuate their stronghold near the Imam Ali mosque and chanted slogans such as "leave Najaf to the residents of Najaf", the agency said.