ZALAKHAN, Afghanistan - An influential tribal leader with close ties to the Afghan president has returned to a key area of operations for Canadian troops in Kandahar.

All eyes are now on the restive Panjwaii district, where a power struggle is already playing out.

The re-emregence of Hajji Fazluddin Agha threatens to upset the balance of power there.

Agha is one of Afghan President Hamid Karzai's most important political allies in Kandahar.

The fallout from the turf war between Agha and the current local leader, Hajji Baran, could have profound ramifications on NATO's push into the horn-shaped hotbed of the insurgency.

NATO troops are pushing deep into the area to root out Taliban fighters, and the Canadian military is heralding Agha's return as a sign that the insurgency's presence in the Panjwaii is waning.