BRUSSELS, Sept 1 (Reuters) - Russia has signalled it is prepared to withdraw its troops to pre-conflict positions in neighbouring Georgia, German Chancellor Angela Merkel said on Monday.

Speaking to reporters after a summit of European Union leaders on the Georgian crisis, Merkel said Russian President Dmitry Medvedev made the statement in a telephone call with French President Nicolas Sarkozy on Sunday. (Reporting by Ilona Wissenbach; writing by Francois Murphy)

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