While stopping short of revoking a death sentence against Rushdie, Iran says it won't adopt any measures that threaten the life of Rushdie, or anyone connected to his book -- The Satanic Verses. Nor will Iran encourage or help anyone.

Ten years ago Iran's Revolutionary leader Ayatollah Khomeini issued a fatwa against Rushdie, charging his book was blasphemous against Islam.

Hardline Sunni Muslim groups in Pakistan opposed Shiite Muslim Iran's decision to distance itself from the death sentence.

``The Iranian brand of Islam has been exposed,'' Sheikh Hakim, chief of Sunni Muslim militant Sipah-e-Sahaba (The guardians of the friends of the Prophet), said.

``According to Islam, Rushdie is liable to death, but Iran is changing its stance for worldly gains,'' he added. Iranian Foreign Minister Kamal Kharrazi on Thursdayannounced in New York that his country would distance itself from a $ 2.5-million reward offered for Rushdie. The Iranian embassy in Pakistan in a statement today, however, said the verdict of Ayatollah Khomeini still holds good and an insult to Islamic sanctities and values was not acceptable to its Government.

Shah Faridul Haq, vice-president of Jamiat Ulema-e-Pakistan, a Right-wing religious party with representation in Pakistan's Senate or Upper House of Parliament, said there was a consensus among all Muslim sects that Rushdie should be killed.

``If Iran withdraws its decision, this means the country is contradicting its faith and fundamental principles of Islam,'' he said.

Saleem Qadri, a leader of hardline Sunni Tehrik, or Sunni movement, said a person involved in blasphemy has to be killed even if he asks for pardon.

Pakistan also has strict blasphemy laws that impose the death penalty against anyone found guilty of insulting Islam.

``No one can change a fatwa because it is in line to theholy book, (The Koran),'' said Qadri.

Munawar Hasan, general secretary of orthodox Jamaat-e-Islami, said Iran's verdict was its internal affair.

``But Rushdie has hurt the feelings of Muslims all over the world and the British Government is trying to portray him as a hero. If he had been living here, we would have punished him according to our laws,'' he said.

A leader of Shiite Tehrik-e-Jafria, Allama Hussain Turrabi, said Iran's statement was distorted by the Western media.

``No one has a right to scrap a fatwa. ``Whoever indulges in blasphemy or leaves Islam must be killed. . . There is no dispute about it,'' he said.He said no one can challenge Ayatollah Khomeini's decision, because he was the supreme leader.

``It is responsibility of every Muslim to kill Rushdie wherever he is found,'' said Turrabi.