Hoon said he could not confirm that the airport had been taken but he said "the most important aspect" of allied forces seizing airport, which is close to the Iraqi capital, is that it would be "a huge psychological blow to the regime."

US troops continued to exchange heavy gunfire and artillery fire with Iraqi troops in and around Baghdad's Saddam International Airport on Friday, an AFP correspondent reported.

The fighting, which raged as the troops attempted to gain full control of the facility, began at about 7:30 am (0330 GMT), shortly after US forces said they had seized about 80 percent of the sprawling civilian and military airport complex.

Iraqi forces were shelling US positions within the airport, situated 20 kilometres (12 miles) southwest of Baghdad.

WAR.WIRE