The agitating Gujjars were also assured by the state government that a recommendation will be made to the Centre to get the legislation listed in the ninth Schedule of the Constitution.
The government and Gujjar leaders reached a consensus on eight points after five rounds of talks and signed an agreement at their final meeting tonight.
The meeting was attended by Gujjar leader Kirori Singh Bainsla and his delegation at the secretariat after which the announcement to call off the agitation was announced at a joint press conference.
"We will introduce a fresh bill to grant five per cent reservation in the next assembly session and this will be forwarded to the Centre to get it listed in the ninth schedule of the Constitution," Parliamentary Affairs Minister Rajendra Rathore said.
A committee will also be formed to decide on the modalities of the bill, he said.
Bainsla thanked the Government and said that their demands have been met and expressed the hope that the agreement will be executed in letter and spirit.
Announcing that their agitation is called off, Bainsla said he will ask his people to clear the railway tracks and highway where they have been squatting disrupting rail and road traffic.