Iraq's foreign minister said a draft of the agreement hammered out after months of negotiations was now final and being reviewed by political leaders. Parliament would be given a chance to vote for or against it, but not to make changes.

The agreement 'has been presented as a final text by the two negotiating teams. The time now is time for a decision,' Foreign Minister Hoshiyar Zebari told a news conference.

'I believe the next few days will be crucial for the Iraqi leaders to make a political decision and a judgment on this agreement.'

At the demonstration across town, marchers waved Iraqi flags and chanted 'Yes, yes Iraq! No, no to the occupation!'

A white-turbaned cleric read out what he described as a letter from Sadr calling on parliament to vote down the pact.

'I reject and condemn the continuation of the presence of the occupation force, and its bases on our beloved land,' the letter said, calling the pact 'shameful for Iraq.' Marchers set fire to a US flag, but the atmosphere appeared mostly calm.

'It is a peaceful demonstration, demanding that the occupier leave and the government not sign the pact,' Ahmed al-Masoudi, a Sadrist member of parliament, told Reuters.

Iraqi authorities said the demonstration was authorized and security had been increased to protect the protesters, who were marching from Sadr's stronghold of Sadr City in the east of the capital to a nearby public square at a university.-Reuters