Webcast News Service, 7 October 2008

Iraq's foreign minister says his country is "very close" to finalizing a deal with the United States that would allow American troops to remain in the country beyond 2008.

Hoshyar Zebari discussed the progress of negotiations between Baghdad and Washington Tuesday during a joint press conference with U.S. Deputy Secretary of State John Negroponte in the Green Zone.

The two sides have been working on an agreement that would keep U.S. forces in Iraq after the United Nations' mandate for the multinational force expires December 31.

But the negotiators have been divided over the issue of granting U.S. servicemen immunity for crimes committed in Iraq.

The press conference began moments after five people were wounded in a bombing in front of Iraq's Foreign Ministry, which is located just outside the Green Zone. An Iraqi soldier was also reported wounded in the blasts.

Meanwhile, a U.S. soldier and an Iraqi policeman were killed during a gun battle with a suspected member of al-Qaida in the northern city of Mosul Tuesday. Military officials say the two were killed during a joint operation at a house occupied by the suspect. The terrorist also died in the battle, and the house was destroyed by U.S. airships.