Terror detainee who once lived in U.S. reaches plea deal February 23, 2012 -- Updated 0327 GMT (1127 HKT) Majid Khan agreed to testify against other detainees, says source familiar with his case Khan, 31, faced up to life in prison on murder, attempted murder and conspiracy charges Khan is accused of working for reputed 9/11 mastermind Khalid Sheikh Mohammed He allegedly funneled money used to finance a 2003 Indonesia bombing that killed 11 Washington (CNN) -- A high-value terror suspect held at Guantanamo Bay, Cuba, has reached a plea agreement with military prosecutors in which he would plead guilty and agree to testify against other detainees in return for a reduced sentence, according to a source familiar with the case. Majid Khan, 31, was charged earlier this month with conspiracy, murder and attempted murder in violation of the law of war, providing material support for terrorism and spying. He was scheduled to be arraigned on February 29. If convicted during a military commission he faced a maximum of life in prison. The source familiar with the case said Khan would plead guilty to all charges under the terms of the agreement, but the source would not specify exactly how much time Khan would have to serve if the agreement is approved by a military judge. Khan's military lawyer, Army Col. Jon Jackson, would not comment. Lt. Col. Todd Breasseale, a Pentagon spokesman, also would not discuss the possibility of a plea deal involving Khan. Khan is a Pakistani national who lived in the United States from 1996 to early 2002. The source familiar with the negotiations would not comment on a Washington Post report that Khan might be transferred to Pakistan at some point after fulfilling the obligation to testify in military commissions for other terror suspects. The government maintains Khan joined members of al Qaeda following the attacks of September 11, 2001. Khan is accused of working for the self-proclaimed mastermind of those attacks -- Khalid Sheikh Mohammed -- and other al Qaeda members when he returned to Pakistan in August 2002. Khan allegedly traveled to Bangkok, Thailand, in December 2002 and provided $50,000 in al Qaeda money that ultimately reached the terror group Jemaah Islamiyah. The funds allegedly were used to finance the August 2003 bombing of the J.W.Marriott Hotel in Jakarta, Indonesia, which killed 11 people and wounded more than 180. Khan and 13 other high-value detainees were transferred to the U.S. military prison at Guantanamo Bay in 2006. Prior to that, the terror suspects were kept in CIA secret prisons overseas.