US troops were questioning 400 Iraqis today who were picked up in a military operation north of Baghdad.
The Americans are hunting for the people behind a number of recent deadly attacks on US occupation forces.
Thousands of US troops continued the sweep - "Operation Peninsula Strike" - today in the area around Duluiyah town, 45 miles north of the capital.
They were supported by fighter jets, attack helicopters and unmanned aerial drones, US Central Command said.
The leader of an Iraqi exile group said in New York on Tuesday that Saddam Hussein was seen north of Baghdad as recently as three weeks ago.
Mr Ahmed Chalabi, head of the Iraqi National Congress, also claimed Saddam was paying a bounty for every US soldier killed, using $750 million in cash stolen from the Central Bank on March 18th.
But Pentagon officials said they had no information Saddam was alive and offering bounties for killing US troops.
AP