NAJAF, June 13: Shia firebrand cleric Moqtada Sadr, whose militia has battled the US-led coalition since April, plans on forming a political party to contest Iraq's January national elections , a top lieutenant to the radical preacher said on Sunday.

"We are planning on founding a party to express the views of the people because they have placed their confidence in us," said Qais al-Khazaali. "We have this idea and we are discussing it. If we found this party, it will participate in elections and it will be built on our popular base."

But Khazaali said the Sadr movement and his Mehdi Army will continue to exist. It was not clear how an anti-militia law adopted last week by the new Iraqi caretaker government would affect Sadr and his thousands-strong Mehdi Army.

Iraq's new prime minister Iyad Allawi called the Mehdi Army an illegal militia, but also indicated he was open to dialogue with Sadr. The anti-militia law technically bans any militia member from politics for three years, but Khazaali said his boss has no interest in politics.

"Sayyid Moqtada Sadr has repeatedly said that he does not want any political post," Khazaali said. "This does not mean he will not support people seeking political office."

Khazaali stressed Sadr's movement was truly interested in joining the national political arena for the country's first free and fair elections since the country's monarchy was overthrown in 1958. "We will participate if the elections are free and honest," he said. -AFP