Under the terms of the agreement, coalition troops will not enter the city, which will be under Iraqi security control, said Yaseri.
A coalition military spokesman said he was not aware of any agreement but said “the situation is under control in Najaf”.
Across the city, police forces deployed in all police stations which had been taken this week by Sadr’s Mehdi Army militia.
No Mehdi Army militiamen were seen on the streets.
Earlier this month, Sadr, who is wanted on two counts of murder, launched a rebellion against coalition forces in several cities, including Najaf, where his forces took over public buildings after fierce clashes.