The US has announced that the Iraqi interim government to be set up on 30 June will be led by a president, two vice presidents and a prime minister at the head of a government of 26 ministries.
A White House statement also said the US would demolish the notorious Abu Ghraib prison near Baghdad in consultation with the new government.
Resolution circulated at UNSC
Meanwhile, Britain and the US have circulated a draft UN Security Council resolution endorsing sovereignty for the interim Iraqi government.
The resolution sets no date for US-led forces to leave Iraq.
According to a senior British official, the interim government will have an effective veto over the operations of foreign troops in the country.
This and other arrangements are not contained in the draft resolution but are to be set out in an exchange of letters with the interim government and agreed before any Security Council vote.
The draft says the US military command, Iraqi forces and the interim government will make arrangements to enhance co-ordination but does not say Iraqi troops can refuse a US order.
Downing Street dismisses reports
Meanwhile, Downing Street has stressed that London and Washington are working closely together to secure the handover of sovereignty in Iraq.
This follows newspaper reports that the British government is increasingly concerned at US military tactics.
However, Prime Minister Tony Blair's official spokesman said the security situation was likely to get more difficult as the June handover deadline approached.