Eyewitness reports said there were minor skirmishes in the area Thursday morning but noted many gunmen could be seen dismantling bombs scattered in the district. Other reports indicated most of the armed militias vanished from the streets as the terms of the cease-fire brokered between Sadr loyalists and the Iraqi government during the weekend took hold.

Maj. Gen. Qassim Atta, the commander of Iraqi operations in Sadr City, cautioned, however, that the cease-fire was still in its initial stages and said most of the agreements have yet to be implemented.

"Security forces are waiting for the brothers in the Sadr movement to prepare the suitable environments for security forces to enter the city, and perform missions and duties in the best possible way," Atta told Voices of Iraq.

Atta told a news conference that Iraqi authorities established checkpoints where militants could turn in their guns in exchange for government-backed rewards.

Meanwhile, U.S. military spokesman for Baghdad affairs Maj. Kevin Bergner said Iraqi and U.S. officials shelved plans to establish emergency shelters for residents fleeing Sadr City.

Reports circulated last week that U.S. and Iraqi officials intended to set up emergency shelters for residents of Sadr City in preparation for a major military offensive there.

"(The cease-fire) would rule out the need to set up camps for hosting the displaced residents from Sadr City, originally intended to be established in three football stadiums," Bergner said.