Baghdad - A member of Iraq's Governing Council said on Sunday that a ceasefire between American troops and insurgents in the Sunni stronghold of Fallujah appeared to be holding and could be extended if talks made good progress.
Mahmud Othman said a delegation, including representatives of the United States-appointed Governing Council, had returned to Fallujah to pursue negotiations that began on Saturday.
He said those talks produced agreement on a 12-hour truce starting at 10am (0600 GMT) on Sunday.
"Actually now the ceasefire appears to be holding," Othman said. "It's supposed to last 12 hours and it will be extended, I think.
"In the meantime they are having negotiations. They don't want to talk about the details because it's very delicate. The ceasefire is very shaky."
US forces launched a crackdown in Fallujah, west of Baghdad, last week in response to the murder and mutilation of four Americans ambushed in the town. US Marines have been battling Sunni insurgents in Fallujah since Monday.
Hundreds of Iraqis have died including many civilians. Hospital officials say more than a thousand people have been wounded, including hundreds of women and children.
The guerrillas want US forces to withdraw from the town and for the siege around Fallujah to be lifted. The US military wants the insurgents to give themselves up and town leaders to hand over those responsible for killing the four Americans.