Pakistan's government has agreed to re-instate sacked Chief Justice Iftikhar Muhamad Chaudhry in a move to diffuse tensions in the eastern city of Lahore.
Iftikhar Chaudhry's restoration is being widely hailed in Pakistan
Prime Minister Yousuf Raza Gilani made the announcement in an address to the nation, adding the judge will be restored on March 21.
Opposition leader and former Prime Minister Nawaz Sharif, who defied a government ban to lead weekend demonstrations, has called off a planned protest march to Islamabad.
Pakistan’s latest crisis was sparked after Sharif and his brother were barred from holding public office following a Supreme Court ruling.
Chaudhry was dismissed by former President Pervez Musharraf on November 3, 2007 along with 60 other judges.