The organisation -- called Hashed Shaabi in Arabic -- had repeatedly voiced its opposition to the involvement of the United States, which launched its first air strikes on Tikrit Wednesday.
Several commanders from the Badr organisation, a militia whose leader Hadi al-Ameri is a senior figure in the Hashed Shaabi, said the group was pulling back but not out of the operation.
"We consider this a break until the coalition issue is resolved," one commander, who gave his name as Baqir, told AFP in Awja, just south of Tikrit.
Another Badr commander confirmed the pullback, which he said was a result of "international pressure".
Iran had so far been the prominent foreign partner in Baghdad's largest operation against jihadists who swept through Iraq's Sunni heartland nine months ago.
But the operation was stalling, and the Iraqi government eventually requested strikes by the US-led anti-IS coalition to break the deadlock.
The Pentagon conditioned its intervention on an enhanced role for regular government forces and said Thursday that paramilitary forces had already started pulling back.
It was not immediately clear whether all of Iraq's myriad militias were on the same page, but Badr commanders said the largest were.
Grand Ayatollah Ali Sistani, the most revered Iraqi Shiite cleric, warned against disunity among the forces involved in the anti-IS fight.
"We must focus on unifying the vision and coordinating the positions of all Iraqi sides," said Sheikh Ahmed as-Safi, delivering Sistani's Friday sermon in the holy Shiite city of Karbala.
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