Headed by Moqtada al-Sadr, a firebrand anti-Western cleric, the Mahdi Army has long controlled large swathes of the capital Baghdad.
Its decision to disarm, expected to be announced this week at Friday prayers, will help to further stabilise Iraq.
The document promises to adhere to the principles of the Mumahidoon – those who pave the way for the coming of the Mahdi, a messianic figure in Imami Shia Islam after whom Mr Sadr’s militia is named.
Analysts have speculated that the switch has come about because the Mahdi army has lost much of its popularity in recent months after failing to impose central discipline on its fighters, some of whom have turned to crime.
Yes, this will be seen and used as part of the surge is working campaign.