The United States and Britain have rejected an attempt to give Baghdad a virtual veto over major US military operations after the occupation of Iraq ends officially on 30 June.
A new draft of the resolution, the fourth in two weeks, makes few substantial changes to earlier drafts.
The draft ignores a proposed amendment by France asking for explicit language rather than side letters in the resolution on Iraqi control over sensitive US-led military campaigns.
The United States and Britain hope to put the draft to a vote after further Security Council consultations tomorrow.
Earlier, Iraq's new Prime Minister, Iyad Allawi, has said his interim government has reached an agreement that will lead to the disbandment of many of the country's factional militias.
Mr Alawi said the agreement would result in about a 100,000 armed individuals either entering civilian life or joining one of Iraq's security services by the beginning of next year.
However, the deal does not cover the so-called Mehdi Army, led by the radical Shi'ite cleric, Moqtada al-Sadr, which has been fighting US-led forces for the past two months.
