By Timour Azhari

(Reuters) -Turkey is preparing a law to let thousands of Kurdistan Workers Party (PKK) fighters and civilians return home from hideouts in northern Iraq under negotiations to end generations of war.

A senior Middle East official and a Kurdish political party source in Turkey said the proposed law would protect those returning home but stop short of offering a general amnesty for crimes committed by former militants. Some militant leaders could be sent to third countries under the plans.

Bringing PKK guerrillas and their families home from their bases in mountainous northern Iraq is seen as one of the final hurdles in a peace process launched a year ago to end a war that has killed 40,000 people.

While officials have spoken publicly about reconciliation efforts in general terms, the sources disclosed details that have not previously been reported, including proposals for returns to take place in separate waves of civilians and fighters, and for commanders to be sent to third countries.

The Middle East official, describing the sensitive negotiations on condition of anonymity, said legislation to allow the returns could come before the Turkish parliament as soon as this month.

PLAN COULD INCLUDE SEPARATE WAVES OF RETURNS

Turkey's intelligence agency MIT, which has led talks with the PKK, did not immediately comment on the........

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