"This amnesty will be unveiled today or tomorrow by the Minister of Justice Malik Dohan al-Hassan," Gurgis Sada, the top spokesman for Iraq's caretaker government, told AFP, noting that the cabinet has already approved the measure.

"The government has concluded that many Iraqis simply joined the so-called resistance (against the US-led coalition) because they had no means of living, had lost their job or were unemployed members of Iraq's old army," he said.

"As a result, the cabinet has decided to give these people a new chance."

The amnesty will outline more precisely who is eligible to apply but Sada fleshed some of the details.

"Rebels who, for example, have not killed anyone during their activities but who continue to hold weapons could be included," explained the spokesman.

According to Sada, such people must hand in their arms, acknowledge the error of their ways and promise never to commit such acts again.

"For its part, the government will actively help to give each individual a job to help them reintegrate into Iraqi society," he said, warning that "severe sanctions would await those who fail to seize this opportunity."

Last week, Iraqi Prime Minister Iyad Allawi said an amnesty would be declared for anyone who acted against the US-led occupation but did not commit a crime, such as those who harboured weapons without using them or kept quiet about insurgents' actions.

"Those people, we will give them a pardon provided that they come forward, surrender the information and arms," Allawi said, adding that he hoped Iraqis would close ranks to close down the insurgency.

Violence in the month leading up to the handover of power to Iraq's interim government last Monday claimed more than 400 lives alone.

Meanwhile, interim Iraqi Prime Minister Iyad Allawi has told ABC television he has received assurances that militias linked to Moqtada al-Sadr would be disarmed but is waiting to see the pledge carried out.

Sadr "is looking for an amnesty. He is looking to be part of the political process. He is willing -- he put it through the delegation I just met -- ... to dismantle the Jaysh al-Mahdi army ... or the militias that he has formed," Allawi told ABC News in an interview to be broadcast Sunday.

Asked if he had received a promise the militia would disarm, Allawi said: "Yes, that is what they told me. Indeed, action needs to be seen beyond words. And I think this is what we will be expecting."

"It depends really on what action, whether they will surrender the weapons or not, whether they'll practically dismantle the Jaysh al-Mahdi. Once they do this, they are welcome," Allawi said, according to an advance transcript of the interview.

"This Iraq now is a new Iraq. It's for every Iraqi citizen to be part of the new and democratic Iraq. Anybody who respects the rule of law and the human rights is welcome to be part of Iraq. Anybody who does not is not clearly welcome. So it's up to him (Sadr)."