Aziz told a hastily convened press conference that the agreement to end two months of bitter hostilities was worked out at an unannounced meeting of Director Generals of Military Operations (DGMOs) at Attari today.

He said the agreement would allow the intruders being pounded by Indian artillery to withdraw from hilltop hideaways, which they said they seized in a lightning offensive earlier this year.

``The DGMOs of the two countries met today and agreed on the modalities of de-escalation, including sector-wise cessation of ground and air operations to facilitate the Mujahideen's disengagement,'' he said.

The DGMO meeting took place a week after Pakistan's Prime Minister Nawaz Sharif flew to Washington for talks with US President Bill Clinton and agreed to take ``concrete steps''to end the fighting.

Sharif has also appealed to the Mujahideen to withdraw.Aziz, on his part, paid tribute to what Pakistan calls Mujahaeedins or freedom fighters.``In the past few weeks the Mujahideen action has been gloriously successful as the just and legitimate cause of Kashmir has engaged the international community's undivided attention throughout this period,'' he claimed.

Brigadier Rashid Querishi, chief army spokesman, said a winding down of hostilities had already started. ``The de-escalation that started yesterday is progressing fine in the Kaksar sector to allow the Mujahideen to disengage,'' he said.