WRAPUP 1-Two weeks after: Iran rallies fade, elite split

* Protests fade, clerical establishment split

* Hardline preacher to lead Friday prayers

* Mousavi supporters plan balloon memorial to Neda

EDITORS' NOTE: Reuters and other foreign media are subject to Iranian restrictions on their ability to report, film or take pictures in Tehran.

By Parisa Hafezi

TEHRAN, June 26 (Reuters) - Iran's leadership has quelled mass protests over a disputed presidential poll two weeks ago, but the battle has moved off the street into a behind-the-scenes struggle splitting the clerical establishment into two camps.

Hardline preacher Ayatollah Ahmad Khatami is expected to reinforce the government message when he leads Friday prayers that the June 12 election in which President Mahmoud Ahmadinejad was declared victor was legal and fair.

Supporters of defeated candidate Mirhossein Mousavi, who want the result annulled, plan to release thousands of balloons on Friday with the message: "Neda you will always remain in our hearts", in memory of the young woman killed last week who has become an icon of the protests.