NEW YORK, April 9 (Reuters) - An Iraqi judicial committee has ordered the release of an Associated Press photographer held by the U.S. military in Iraq for two years and dismissed terrorism-related accusations against him, the news agency said on Wednesday.

The U.S. military has accused Bilal Hussein, an Iraqi, of working with insurgents in Iraq. He was seized in April 2006 in Ramadi, capital of western Anbar province, and has been imprisoned without charge ever since.

The AP reported that a four-judge panel in Baghdad ruled that Hussein's case falls under a new amnesty law and ordered Iraqi courts to "cease legal proceedings." The ruling also said Hussein should be immediately released if no other charges are pending.

In a statement, Tom Curley, the Associated Press president, hailed the decision and demanded that officials "finally do the right thing" and free Bilal Hussein.

The AP has repeatedly called for the immediate release of Hussein, who was part of its photo team that won a Pulitzer prize in 2005.

The U.S. military has said Hussein was detained for possessing material used to make roadside bombs, insurgent propaganda, and what it described as a surveillance photo of a coalition installation.

Hussein is just one of several Iraqi journalists who have been held by the U.S. military without being charged.

Reuters journalists have also been detained by the U.S. military for months and later released without charges. (Reporting by Michelle Nichols, editing by Philip Barbara)

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