US and Iraqi forces battled militants in Najaf today and Iraqi National Guardsmen advanced to within 200 yards of the holy city’s Imam Ali Shrine compound, where insurgents loyal to radical cleric Muqtada al-Sadr have been holed up for weeks.

US FORCES and Shi'ite militants fought fierce battles yesterday near a revered shrine in Najaf, as the US military stepped up pressure on the insurgents to quickly hand over the holy site to Shi'ite religious authorities.

An aide said Iraq’s Grand Ayatollah Ali al-Sistani, currently in London after undergoing medical treatment, has agreed to take over holy shrine in Najaf from militants.

Fierce fighting was reported around Najaf’s holy shrine today after a rebel cleric’s aide rejected a government ultimatum for Muqtada al-Sadr’s militia to disarm or risk a massive offensive.

More than 300,000 Muslims began a two-day, 110-mile march to the holy city of Najaf today to mourn the Shiite leader assassinated in a car bombing that killed at least 85 people.