BAGHDAD, IRAQ — Iraq’s presidential council dropped its objections yesterday to a law that helps clear the way for provincial elections that are considered key to reconciling the country’s ethnic and religious factions.

The unexpected announcement by the council, made up of the country’s president and two vice presidents, follows intense lobbying by American officials to make the power-sharing compromises needed to solidify a recent drop in violence.

American patience with Iraq’s fractious politicians is wearing thin as the war enters its sixth year. But yesterday’s decision offers officials here a sign of progress, which they can use to make the case in Washington for time over the summer to assess the impact of American troop withdrawals under way before pulling out more forces.

The top American commander in Iraq, general David Petraeus, and American Ambassador Ryan Crocker will make their recommendations to Congress in April. The measure, which defines the relationship between the country’s 18 provinces and the central government, calls for elections by October 1, 2008. Iraq’s parliament approved it on February 13 under a package deal that included a $48 billion national budget and an amnesty plan for the mostly Sunni Arab detainees languishing in Iraqi custody.

But the presidential council withheld its needed approval because of objections from Vice president Abdul-Mahdi, a member of the main Shiite Muslim political party, the Supreme Iraqi Islamic Council. President Talabani, a Kurd, and Vice president Hashimi, a Sunni, are the other members of the presidential council.

The dispute centered on an article that would give the prime minister authority to ask parliament to remove a provincial governor. Mr. Abdul-Mahdi argued that the provision is unconstitutional and the authority to dismiss governors should rest with the provincial councils that select them, an aide said yesterday.

The council, which must unanimously agree to any legislation before it becomes law, dropped its objections after receiving assurances that parliament would consider amendments to the law, said the panel’s chief of staff, Nasir Ani. The measure now must be published in an official gazette, which is expected in the coming days. Even with approval of the law, the political blocs need to agree on rules for conducting the October election.