Taliban leaders have agreed to surrender their final stronghold in the southern city of Kandahar.

Anti-Taliban mujahideen assisted by US special forces are also closing in on the al Qaeda Tora Bora cave complex, the Bush administration has ordered Osama bin Laden to be captured dead or alive.

Kandahar, weakened by weeks of bombing, has negotiated a surrender with Hamid Karzai, the Pashtun leader appointed to head-up an interim Kabul government from December 22.

The fate of Taliban leader Mullah Mohamad Omar and Arab forces in the besieged city is unclear but the US has warned that it will not accept a surrender that allows for his escape or amnesty.