May 27 (Bloomberg) -- The U.S.-led coalition has agreed to an offer by radical Shiite Muslim cleric Moqtada al-Sadr, who has led an uprising in the southern Iraqi cities, to withdraw his militia from Najaf, according to the country's national security adviser, Mouwafak al-Rubaie.

The agreement, reached early today by al-Sadr and Shiite leaders, allows for the withdrawal of members of al-Sadr's Mahdi Army militia from the streets of Najaf, and the pullout from the city of militiamen who aren't residents, al-Rubaie said. Coalition forces will also withdraw from the center of the holy city and make way for Iraqi police and security forces to take control, he said.

``I understand that the coalition will honor and respect the deal,'' al-Rubaie said in a televised press conference in Baghdad. ``I'm very hopeful that Sheikh Moqtada al-Sadr will live up to the terms of the agreement,'' which also covers the city of Kufa, near Najaf, he said.

A coalition spokeswoman reached by telephone in Baghdad said the military had no immediate comment on the report of an agreement.

U.S. forces have been fighting members of al-Sadr's Mahdi Army militia since April in the Sadr City district of Baghdad, Najaf and other southern cities. Sayed Ryad al-Nuri, a top aide to al-Sadr, was arrested yesterday in Najaf, the U.S. military command said. Fighting in the city yesterday resulted in the deaths of 24 militiamen, it said.

The U.S. is committed to finding a peaceful solution to the standoff with al-Sadr, Army Brigadier General Mark Kimmitt told until the militia is disarmed and al-Sadr is in custody to face charges of involvement in the murder of another cleric, Kimmitt said. The U.S. will hand over power to an interim Iraqi government on June 30.

To contact the reporter on this story: Alex Morales in London at amorales2@bloomberg.net.

Last Updated: May 27, 2004 07:16 EDT