"A precision strike in northwest Fallujah, conducted at 3:00 am... has taken another toll on the Zarqawi network," it said in a statement.

"Multiple sources reported that a known associate of the Zarqawi network was present at the time of the strike," the army said.

US and Iraqi forces have set their sights on wresting control of Fallujah, which they believe is a nesting ground for the Jordanian-born militant and his followers.

With a 25-million-dollar price-tag on his head, Zarqawi has claimed responsibility for some of the worst attacks and kidnappings to plague Iraq in recent months, including the slaughter of 49 new Iraqi soldiers at the weekend and a car bomb attack against an Australian convoy Monday that left three Iraqis dead and 16 people wounded, incuding three Australian soldiers.

A joint US-Iraqi force of about 1,000 has surrounded the Sunni Muslim bastion for almost two weeks as US warplanes pound on an almost daily basis suspected hideouts of partisans of Zarqawi, the alleged frontman for the Al-Qaeda network in Iraq.

The aerial bombardments, however, have raised concerns among humantiarian organisations for the welfare of the remaining residents of Fallujah.

The US military almost always says its raids are "precise" while hospitals always speak of civilian casualties.

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