Iraqi Deputy Foreign Minister Labid Abawi said he is hopeful that the two countries can still settle the problem of rebels from the Kurdistan Workers' Party (PKK), launching attacks against Turkey from northern Iraq.

The Turkish government wants Iraq to deal with the rebels inside its own territory and has been saying that it can't wait indefinitely for Iraq to do so. The United States, which believes an offensive will make the unstable region even more volatile, is doing what it can to stop such an eventuality.

Mr Abawi said several proposals were offered such as the immediate establishment of an Iraqi-Turkish coordination committee on the border areas.

He also expressed regret over the eight Turkish soldiers that PKK rebels reportedly captured last Sunday.