Denmark, a staunch ally of Washington, has since the beginning of the US-led war in 2003 sent troops into Iraq for six-month periods with the possibility of extension.
On Tuesday however the government said it would prolong the Danish soldiers' next stay in Iraq to eight months so their potential pull-out would not coincide with the next general elections scheduled there in December.
Moeller has refused to set a date for a final pull-out of Danish troops from the war-torn country, claiming that "if we did that we would risk seeing the terrorists putting their ammunition on ice until the foreign troops have left the country, and then let loose hell against the Iraqi democratic government".
Denmark currently has 529 soldiers in Iraq, 500 of whom are stationed under British command near Basra in the south of the country, and has only suffered one loss since the beginning of the war: a soldier killed by friendly fire.
Denmark's right-leaning coalition government looked poised to get the parliamentary approval it needs for the extended mandate since it already has the support of the extreme right Danish People's Party (DPP), which secured it a majority in the house during the last general elections in February.
"We support the government as we have done throughout the Iraqi conflict, and it seems important to us that Denmark's involvement be more and more directed at civilian reconstruction and at the training of the Iraqi forces," DPP spokesman Soeren Espersen told AFP.
The DPP also said it hoped the extended mandate could help foster an agreement with the future Iraqi government over the return of between 600 and 700 Iraqi refugees who have been refused asylum in Denmark.