The United Nations Secretary General, Kofi Annan, has welcomed the official provisional results of last month's Iraqi general elections, confirming a near-majority for the Shia Muslims.
Mr Annan promised continued support for what he termed a 'democratic and united Iraq'.
The outcome, which was cleared by international election monitors, opens the way for US-backed negotiations with Kurds and Sunni Arabs on a national unity government.
Talks are expected to start soon.
The electoral commission announced earlier that the conservative United Iraqi Alliance, which controls the outgoing government, won 128 of parliament's 275 seats. Its allies in the Kurdish Alliance won 53 seats.
Together they were just three seats short of the two-thirds majority needed to elect a president and push through constitutional reforms.
The Sunni-based National Concord Front took 44 seats and another Sunni party, the National Dialogue Front, won 11 seats.
Former Prime Minister Iyad Allawi's secular Iraqi National List took 25 of the available seats while the Kurdish Islamic Party won five.
The outcome of the election is seen as a crucial milestone in rebuilding Iraq, with hopes pinned on encouraging the disenchanted Sunni community to play a full role in political life.
However, it remains unclear how the Sunnis, who dominated the regime under Saddam Hussein, will accept the results of the poll.
A team of international monitors reviewed the results of last month's vote following accusations of fraud by Sunni-based and secular parties. Parties have two days to appeal the results before they are certified as definitive.
Two Iraqis killed in Baghdad blast
Two Iraqi civilians have been killed and three wounded after a roadside bomb targeting a US patrol exploded in Baghdad.
Police said the explosion occurred in the Karada district of the capital.
Security forces have been on high alert in Iraq due to the publication of December's election results.
Three provinces have been sealed off for 48 hours to prevent possible rebel attacks. The provinces concerned, Diyala, Salaheddin and Anbar, are heavily populated by the country's Sunni Arab minority whose leaders complained of fraud in the 15 December elections.
Police in the western city of Fallujah have also announced the sealing off of the Sunni-majority town for three days.
In Baghdad itself, security measures have also been tightened with some 13,000 Iraqi security forces involved in 'Operation National Unity', a long-term plan for improving public safety.