BEIJING (AFP) - Former Chinese leader Jiang Zemin is to step down from his post as head of the armed forces, completing a two-year transfer of power to his successor President Hu Jintao, Communist Party and diplomatic sources revealed.
The news came amid a four-day closed-door key meeting of the Communist Party Central Committee attended by some 198 top party officials and hundreds of cadres.
The sources said there was a lot of pressure within the central committee for the 78-year-old military chief to retire, following in the footsteps of late paramount leader Deng Xiaoping, who resigned as chairman of the Central Military Commission in 1989 in favour of Jiang.
They said the committee meeting, which ends Sunday, would ratify his departure from the powerful post.
Hu is expected to be able to promote his political agenda of reforming the party more freely after the move.
"The theme of the plenum this week: improving the governing abilities of the party, proved that Hu was well in control," said a diplomat.
Jiang stepped down as national president and secretary general of the ruling Communist Party two years ago to make way for a new generation of leaders led by Hu, 61.
However the chairmanship of the Central Military Commission, arguably the most powerful body in the country's closed political system, gave Jiang immense power in areas such as security and foreign policy.
Most commentators have suggested Jiang would only likely step down from his last official post if his protege, Vice President Zeng Qinghong, was promoted to replace Hu as vice chairman of the Central Military Commission.
However a diplomatic source said it was not certain Zeng would even be a member of the commission.
In Hong Kong, the South China Morning Post newspaper suggested Jiang could still wield influence even if he does resign his final post. It cited the example of Deng, who gave up all his official posts in 1989 but continued to hold power with no title for years.
"Mr Jiang's retirement is unlikely to produce any major changes in domestic or foreign policies," it said. "But as Mr Hu continues to consolidate his power and make his mark, subtle changes can be expected."
It quoted sources as saying that Hu's policies are expected to be more practical and flexible, particularly on China's foreign policy as well as its policies towards Taiwan and Hong Kong.
Rumours have swirled over a power struggle between Hu and Jiang in the days leading up to the central committee meeting and minimal information has been released to the public.
The secretive nature of the communist party meeting has made it impossible for analysts to make more informed predictions amid a flurry of rumours.
Just days ago, speculation was rife that Jiang was refusing to step down from the top military position, thus preventing Hu from wielding effective influence in his capacity as the nation's leader.
Prime-time radio and TV news Thursday led with a report saying Jiang had signed an order on "Environmental Regulations of the People's Liberation Army" -- a move seen as a strong indication he was not about to step down just yet.
Chinese state media gave few clues about the speculated power struggle in the top echelon but have over the past few days suggested the party must adapt to the unprecedented changes in society and make the government more transparent and accountable to its people -- a theme said to be close to Hu's heart.
The China Youth Daily, a newspaper published by Hu's Communist Youth League power base, on Friday described the social situation as "urgent", saying if the party didn't move forward with the times it would risk social instability and losing credibility among the people.