US President George W Bush has said he expects to seal a security pact with Iraq but stressed there were no plans for permanent military bases there.

He described reports that there were plans to build permanent US bases in Iraq as "erroneous", adding there was "all kinds of noise" about the issue in the United States and Iraq.

Mr Bush said: "I think we'll end up with a strategic agreement with Iraq. We're in Iraq at the invitation of the sovereign government of Iraq.

"One of the lessons of Iraq is that for economic developoment there has to be a measure of security, which is happening now.

"This will not involve permanent bases nor will it bind any future president to troop levels."

Mr Bush was speaking at a news conference with German Chancellor Angela Merkel in the town of Meseberg as part of his trip to Europe.

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