Both officials underlined that the discussions are ongoing and that nothing is finalised. But the talks point to a consensus by both governments that, in contrast to the US withdrawal in 2011, a longer-term presence of American troops in Iraq is needed to ensure that an insurgency does not bubble up again once the militants are driven out.
Both officials spoke on condition of anonymity in line with regulations.
The talks involve US Secretary of Defence Jim Mattis and Iraqi officials over "what the long-term US presence would look like," the American official said, adding that discussions were in early stages and "nothing has been finalised."
US forces in Iraq would be stationed inside existing Iraqi bases in at least five locations in the Mosul area and along Iraq's border with Syria, the Iraqi government official said. They would continue to be designated as advisers to dodge the need for parliamentary approval for their presence, he said.
The US official emphasised that there were no discussions of creating independent American bases in Iraq, as such a move would require thousands more personnel. He said the troops levels would be "several thousand ... Similar to what we have now, maybe a little more."
Currently, the Pentagon has close to 7,000 US troops in Iraq, many not publicly acknowledged because they are on temporary duty or under specific personnel rules. The forces include troops training Iraqi forces, coordinating airstrikes and ground operations, and special forces operating on the front lines.
Such an agreement would underscore how the fight against IS has drawn the US into a deepening role in Iraq.
At the height of the surge of US forces in 2007 to combat sectarian violence that nearly tore Iraq apart, there were about 170,000 American troops in the country. The numbers were wound down eventually to 40,000 before the complete withdrawal in 2011.
During a visit to Iraq in February, Mattis and Lt Gen Stephen Townsend, the top US commander in Iraq, described an enduring partnership between the US and Iraq.
"I imagine we'll be in this fight for a while and we'll stand by each other," Mattis said.
Townsend, who was standing by Mattis, declined to say how long the United States will stay in Iraq. But, he said, "I don't anticipate that we'll be asked to leave by the government of Iraq immediately after Mosul." He added, "I think that the government of Iraq realises their very complex fight, and they're going to need the assistance of the coalition even beyond Mosul."
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