BAGHDAD, Oct 9: Iraq's plans to hold elections in January gained traction on Saturday after a Shia militia agreed to disarm in Baghdad and delegates from rebel-held Fallujah said the Sunni dominated city wanted to vote in the polls.

The progress came in separate sets of talks with the Iraqi interim government and US officials.

The Mehdi Army militia led by Moqtada al-Sadr agreed to hand over weapons to Iraqi police from Monday under a deal that could defuse the Baghdad flashpoint of Sadr City.

Sadr's militia has staged two uprisings against US and Iraqi forces this year. An insurgency still rages in large swathes of northern and central Iraq, including Falluja.

Karim al-Bakhati, a tribal leader negotiating for people in Sadr City, told Reuters US forces had promised to stop bombarding the vast Shia slum area with immediate effect.

"We have agreed that starting from Monday, the Sadr movement will hand over its weapons to the Iraqi police," he said, adding that collection points would be agreed in the next day or two.

Bakhati said US Ambassador John Negroponte had been present when he reached the accord with Iraqi officials. A government source confirmed a disarmament deal had been struck.

Sadr aides said the agreement would apply initially only to Sadr City, not to other restive Shia areas of Iraq.

Falluja delegates said the city wanted to take part in the elections and could accept the return of Iraqi security forces.

"A delegation from Falluja is now discussing the entry of Iraqi National Guards to the city with the defence ministry," chief Falluja negotiator Khaled al-Jumaili said.

He was speaking after talks at a US military base near Falluja, attended by Negroponte and government officials.

"The people of Falluja support the elections and want to vote in them," said Jumaili, a mosque preacher who is a member of the city's Mujahideen Shura.-Reuters