A day after the dispute forced an embarrassing delay of a signing ceremony in Baghdad, an Iraqi Defence Ministry source said disagreements remained over the wording of a document that outlines the new relationship between US-led occupying forces and Iraq's new military.

"There are some disputes between the two parties. We have our own point of view and they have theirs. We want thorough control and want the freedom to make decisions independently," the source told Reuters on condition of anonymity.

Saturday's ceremony to transfer control of Iraq's army from US commander General George Casey to the Iraqi Defence Ministry had been hailed by US officials as a big step towards Iraq taking responsibility for security.

The US military, suffering almost daily casualties that have sagged domestic support for the war in Iraq, has been training Iraq's fledgling military under a plan that would allow it to begin withdrawing its 140,000 troops.

Maliki, keen to be seen as ending his dependency on US military power, said last week his forces would take control of most of Iraq from foreign troops by the end of the year.

A US military spokesman said the dispute centred over the document's wording and played down major disagreements between the two sides, adding that he expected it would be signed soon.

"It's not a matter of major substance, but they're not happy with the wording of the document," Lieutenant Colonel Barry Johnson told Reuters late on Saturday.

"It is embarrassing, but it was decided it was better not to sign the document," he said.

But in a sign that negotiations could drag on, Mohammed al-Askari, spokesman for Iraq's Defence Ministry, said the government would take its time until an agreement was reached.