Ms Rice is holding talks with Iraqi leaders including Prime Minister Nouri Maliki during the unannounced visit.

It comes after 10 months of difficult negotiations between Washington and Baghdad about the status of US troops on Iraqi soil.

Reports suggest a compromise draft agreement is being considered by both governments.

Negotiations have been held up by disagreement over the timing of the final withdrawal of US forces from the country and the immunity of US soldiers from prosecution under Iraqi law, says the BBC's Crispin Thorold in Baghdad.

'No agreement yet'

Included in a draft Status of Forces Agreement being considered is a commitment that US troops will start to withdraw from cities across the country from next summer, moving to large bases, out of public view, BBC correspondent reports.

Ms Rice scotched local media reports an agreement had already been reached, but said good progress had been made, reports the BBC's Kim Ghattas, who is travelling with the secretary of state.

"The negotiators have taken this very, very far towards an end agreement," said Ms Rice. "But there is no reason to believe that there is an agreement yet or that there is going to be today."

"Ultimately, the prime minister has to make the call on moving forward."

She added that any aspirational timeline for US troop withdrawal had to take into consideration the situation on the ground.

Any future agreement on the status of US troops in Iraq must be approved by the US president as well Mr Maliki and Iraq's parliament.

Parliamentary approval

Ms Rice said she was visiting Baghdad to hear from Iraqi officials about concerns they may have on the long-term strategic framework agreement between the two countries.

During her first visit to the country since March, Ms Rice will also hold talks with Iraq's vice-president and foreign minister, as well as senior US officials.

Other issues up for possible discussion include the status of some 20,000 prisoners held by US forces without charge and Iraqi electoral law.

A United Nations mandate for US troops to stay in Iraq expires in December.

Iraqi officials have said they would like to see US forces end routine patrols of Iraqi towns by the middle of next year, and withdraw all combat troops in the next couple of years.

There are currently around 147,000 US troops in Iraq.



BBC