The Taliban in Pakistan's restive Swat valley received Rs 480 million ($6 million) in compensation from the government after agreeing to a ceasefire with security forces for an indefinite period, a media report said on Tuesday.

The militants agreed to lay down arms and endorse a peace deal between the government and religious hardliner Sufi Mohammad to impose Shariah or Islamic laws in Swat in exchange for the payment, Italian news agency Adnkronos International (AKI) reported quoting security sources.

"The amount has been paid through a backchannel," a senior security official told AKI on condition of anonymity.