The Iraqi government welcomes the statement by Shiite cleric Muqtada Sadr calling for withdrawal of his militants from the streets.

Senior al-Sadr aide, Al-Araji says that first point is: "the cancellation of all armed activity in Basra and all other provinces."

He says after this decision, anyone who carries weapon will not be from the Sadr movement and out of his instructions.

The radical Shiite leader has ordered his Mahdi Army fighters to stop showing up in streets with weapons and targeting security forces, government institutions and political parties' offices.

"We are not responsible for anyone who carries a weapon and targets government services, institutions or the offices of political party,"

Meanwhile, Sadr asks the government to announce an amnesty and release detained militia members.

According to the Iraqi Interior Ministry, the six-day clash between Shiite gunmen and the Iraqi security troops have killed about 300 people and left more than 500 wounded in Basra and Baghdad. Fierce battles have also been seen in other major southern cities.

After Sadr's statement, the Iraqi government has announced that the curfew imposed on Baghdad will be lifted on Monday morning, but has not declared an end of the military operation in Basra.