Grand Ayatollah Ali al-Sistani met with preacher Moqtada Sadr, who has been leading the rebel fighters. They have been battling against US-led troops.

It was agreed the fighters would leave the shrine that has become their base.

The deal came hours after at least 74 people died in a bombing at a mosque in a place called Kufa, near Najaf.

A further 315 people were injured. It's not clear who carried out the attack.

Mr Sadr and his supporters have been challenging the rule of the temporary Iraqi government.

The finer points of the deal have yet to be agreed, but a spokesman for Ayatollah Sistani said talks were "three quarters towards the end of the crisis".