Rushdie, whose controversial book Satanic Verses provoked outrage among Muslim leaders when it was published in 1989, has lived with the death threat for nine years. Under police protection, he has moved between different homes and has been unable to meet people without stringent security checks. Now he said he looked ``forward to the day when I can return to the arts pages and leave the news pages.''

On the arts pages this week is announced the dramatisation of his children's storyHaroun and the Sea of Stories, which opens at the National Theatre in London. Haroun was the first piece of work that Rushdie produced after the fatwa was passed. Many have remarked on the fact that this story, intended for children, reflects Rushdie's situation and the predicament of writers throughout history of being silenced by the intolerance of others.

The British media's reaction to the Iranian government's move reflects Rushdie's upbeat mood. The Guardian declared, ``Rushdie's nightmare is over'', the Telegraph said ``Rushdie joy at freedom from fatwa''. The Time's headline read, ``This means freedom says Rushdie''.

British officials, however, added a note of caution. A foreign office spokesperson said, ``I wouldn't imagine that tomorrow he's going to be walking up and down Oxford Street,'' adding that even in Britain, there was a handful of ``fanatics'' who still threatened to kill Rushdie.

Foreign Secretary Robin Cook said that although the new Iranian position marked a``very sharp reduction in the threat to his life, the agreement does not embrace any renegade fanatic who may wish to still try to carry out a threat to the life of Rushdie.''

Officials indicated that Rushdie would continue to have some protection to guard against ``freelance'' attempts to harm him. An indication of how seriously this threat is taken is reflected in British Airway's announcement that it would continue its ban on flying Rushdie since the safety of its passengers was at stake.

Rushdie, who was briefed by foreign office minister Derek Fatchett and spoke to Cook who is in New York, emphasised his changed circumstances. He told the BBC this afternoon: ``I am not foolish... and I will be sensible and careful... but the only threat against me... the threat of state-sponsored terrorism is over.'' He said that he had faith in an agreement which the two governments had ``nailed themselves to... in front of the world.''

Commenting on the fact that there were people who said that the Iraniangovernment's move did not alter the validity of the fatwa, Rushdie said ``All I can say is that it seems that this has been done in Iran with consensus. There are one or two self-styled hard-liners in England belonging to tin pot organisations who are saying this and that but they are completely unimportant.''

British diplomats believe that President Khatami would have secured the agreement of hard-liners in the Iranian government before making a public commitment. In Britain, however, Islamic organisation have been unanimous in their view that the fatwa stands, and that the Iranian government cannot change this fact.

Ghayasuddin Siddiqui, president of the Muslim Parliament in Britain said, ``As far as Rushdie is concerned the situation remains the same. The fatwa remains operative and he is only safe in Britain.'' Anjam Choudhary of the more extreme Al-Muhajiroun said, ``There will always be Muslims who want to carry out the verdict.''

Manzoon Moghal of the Muslim Council of Britain said that``Rushdie's rehabilitation into the Muslim community will not start until he apologises and agrees to have copies of the Satanic Verses destroyed.'' Iqbal Sacranie of the UK Action Committee for Islamic Affairs echoed this saying, ``The publication of the book was the root cause of the problem... and on that there has been no change at all.'' Rushdie however, said that he has ``always been proud of the Satanic Verses as of his other books.'' He now hoped that the book would cease to be a ``political football'' and that people would read it and judge whether it is a good book or not.