  There is mounting observational evidence from Chandra for strong interaction
between keV gas and AGN in cooling flows. It is now widely accepted that the
temperatures of cluster cores are maintained at a level of 1 keV and that the
mass deposition rates are lower than earlier ROSAT/Einstein values. Recent
theoretical results suggest that thermal conduction can be very efficient even
in magnetized plasmas. Motivated by these discoveries, we consider a ``double
heating model'' which incorporates the effects of simultaneous heating by both
the central AGN and thermal conduction from the hot outer layers of clusters.
Using hydrodynamical simulations, we demonstrate that there exists a family of
solutions that does not suffer from the cooling catastrophe. In these cases,
clusters relax to a stable final state, which is characterized by minimum
temperatures of order 1 keV and density and temperature profiles consistent
with observations. Moreover, the accretion rates are much reduced, thereby
reducing the need for excessive mass deposition rates required by the standard
cooling flow models.
