Iraq premier holds on to reins of power after deadlock broken

The deal breaks an eight-month impasse that paralysed the government and raised fears insurgents were taking advantage of the political deadlock to stoke violence. Members of the Sunni-backed secular coalition that had been so vehemently against Mr Maliki in the end resigned themselves to serving in his government.

"Finally, fortunately, it's done. It's finished. All the groups are in it," said Kurdish MP Mahmoud Othman, who took part in the nearly seven hours of negotiations yesterday along with talks during the previous two days. An official in the Iraqiya Sunni-backed coalition confirmed anonymously that a deal had been reached.

The general outlines of the deal are that President Jalal Talabani, a Kurd, will keep his largely ceremonial job and that Iraqiya will choose the parliament speaker, according to MPs familiar with the deal.

The compromise plan would also create a new council with authority over security issues, although it was not immediately clear exactly how much. It was an idea promoted by US officials as a way to keep Iraqiya in the government. If the council proves to have real authority, that could serve as a small victory for Iraqiya.

It was also unclear what role, if any, Iraqiya's leader, former prime minister Ayad Allawi, would play in the government.

Ever since the March 7 vote, Iraqi MP have tussled back and forth over who would lead the new government. Iraqiya was able to capitalise on widespread Sunni frustration with the Shiite-led government to get 91 seats in the election, compared with 89 for Mr Maliki's bloc.

But despite its bragging rights as the victor, it was never able to find the political partners it needed for a majority and recently Mr Maliki gained momentum as he gathered new allies, like followers of anti-American cleric Muqtada al-Sadr. It was uncertain what role al-Sadr or his hardline Shiite faction might play in a new government.

US officials have been worried that Mr Maliki's partnership with them would open the door for direct Iranian influence in Iraqi affairs and derail pro-Western security and commercial policies.

Also unclear is whether the Kurds, who have played the role of kingmaker in Iraqi politics since the fall of dictator Saddam Hussein, won any concessions besides keeping the post of president.

The Kurds had wanted firm guarantees in exchange for their support, including a referendum to decide control of the oil-rich region around Kirkuk.