US troops have used tanks, artillery and helicopters in an overnight clash with an Iraqi force of about 1,500 men near the town of Najaf in central Iraq, according to military sources.
The sources had no information about possible casualties in the fighting between the Iraqis and US brigades, which are trying to advance north along the west bank of the Euphrates River towards Baghdad.
Iraq said cluster bombing by US-led forces had killed 26 civilians in Najav, 100 miles south of Baghdad, and wounded 60 there until last night.
A Reuters reporter said it was not clear whether the Iraqis were regular troops or elite Republican Guards. He said the Iraqi forces, armed with artillery, were moving from a position northeast of Najaf when they were detected.
"The battle raged for a few hours. It finished about 3 a.m." (midnight GMT), he said. Half of the US troops in the area were put on guard during the clash against a normal 25 per cent.
Iraqi Information Minister Mohammed Saeed al-Sahaf told a news conference in Baghdad the US forces had retreated about 30 miles away from Najaf.
"The enemy hit civilian areas in Najaf before our valiant forces successfully beat them back. Until last night, the toll from this bombing was 60 wounded and 26 martyrs," he said.
Senior US commanders said yesterday they expected a decisive battle near Kerbala, a Shi'ite holy city north of Najaf, possibly within the next 48 to 72 hours.