From the CSM:

...behind the scenes, direct negotiations were under way to transform Sadr's militia into a political entity and end a violent rebellion.

The coalition has declared repeatedly that it will not negotiate with "militias and criminals." Nonetheless, a deal may be forthcoming with Sadr, said an official close to the talks. The coalition has previously said it wanted the cleric killed or captured.

If the deal pans out, it could bring to an end the seven-week conflict. The hope is that by engaging Sadr politically, the coalition can neutralize him militarily. His militia might also eventually be integrated into the Iraqi national security forces...