Turkey has stationed troops at a base outside Mosul since last year as part of a training mission coordinated with the Iraqi government in Baghdad.
The arrival of additional Turkish forces last week, however, sparked uproar in the Iraqi capital.
Iraqi officials gave Turkey a 48-hour deadline to withdraw additional troops and Turkey declared it had halted the new deployment.
Iraq's UN Ambassador Mohamed Alhakim told reporters in New York yesterday that Baghdad and Ankara were working to solve the dispute bilaterally and "I think it's going very well."
"This is not an act of aggression but an act of solidarity," Davutoglu said. "Our intention is to protect these trainers. "
Asked about Baghdad's request to withdraw the troops, Davutoglu said: "When we saw the reaction we stopped the transfer but we cannot leave these trainers without protection."
Earlier, the Turkish military said it has carried out aerial raids on suspected Kurdish rebel sites in a new cross-border offensive in northern Iraq. The raids "destroyed" targets of the Kurdistan Workers' Party, or PKK, in four areas of northern Iraq, including the Qandil mountains on the Iraq-Iran border where the PKK's leadership is based, the military said.
Today's strikes were the first since tensions erupted with Iraq over the Turkish deployment.
