The funeral procession of the influential religious and political figure is to make its way south on Saturday to the holy city of Karbala, and then to Najaf, where Hakim will be buried.
By the end of July, they hope to finalize a deal that would map out the role and "time horizon" for US troops in the country.
The Islamic Supreme Council of Iraq aims to capitalize on the disarray within Moqtada al-Sadr's movement ahead of provincial elections planned for October.
Iraqi troops took the southern city without a shot being fired from Shiite cleric Moqtada al-Sadr's Mahdi Army.
Iraq's oil minister says the assault helped curb oil smuggling.
Residents of Sadr City, Moqtada al-Sadr's Baghdad stronghold, said they felt 'caught in the middle' of the battle between Sadr's Mahdi Army and US and Iraqi forces.
Battles continued to rage Sunday between the radical cleric's Mahdi Army and Iraqi and US forces.
President Mahmoud Ahmadinejad met with key Iraqi leaders and offered the country a $1 billion loan as he began a two-day visit Sunday.