“We had very good talks that were friendly and brotherly. ... We have mutual understandings and views in all fields, and both sides plan to improve relations as much as possible,” Ahmadinejad said in a joint news conference with Talabani at the Iraqi president’s residence, located across the Tigris River from the new US Embassy in the fortified Green Zone.

Ahmadinejad’s visit here gives him a chance to highlight the relationship his country has with post-Saddam Hussein Iraq - both countries are led by Shiite Muslims - while also serving as an act of defiance toward the United States, which accuses Iran of training and giving weapons to Shiite extremists. Iran denies the charges.

Talabani said the two discussed economic, political, security and oil issues and planned to sign several agreements later. But he said the issue of borders, including the disputed Shatt al-Arab waterway between the two countries, was not discussed.

Ahmadinejad stressed that Iran wanted a stable Iraq that would benefit the region. “A united Iraq, a sovereign Iraq and an advanced Iraq is to the benefit of all regional nations and the people of Iran,” he said.

The news conference appeared to end abruptly after a reporter asked about the Mujahedeen Khalq in Iraq, which opposes Iran’s ruling clerics. The group, also known as the People’s Mujahedeen Organisation of Iran, was allied with Saddam Hussein’s regime in Iraq during the war between the two countries. The US and European Union list it as a terrorist group.

Talabani interjected and volunteered to answer the question, saying: “This issue has been discussed earlier and the presence of those as a terrorist organisation is constitutionally not allowed. We will endeavor to get rid of them out of the Iraqi territory soon.”

Iraqi Foreign Minister Hoshyar Zebari told The Associated Press that Ahmadinejad plans to leave on Monday morning. Ahmadinejad went from his session with Talabani to a meeting with Prime Minister Nouri al-Maliki. Both of the Iraqi leaders have made official visits to Iran since taking office.

The U.S. has said it will have no involvement in Ahmadinejad’s visit. Ahmadinejad arrived in Iraq a day after Adm. Mike Mullen, chairman of the Joint Chiefs of Staff, came to Baghdad on an unannounced visit with commanders and Iraqi officials. The US has tried to downplay Ahmadinejad’s visit, saying it welcomed Iran’s stated policy of promoting stability but that its actions have doing just the opposite.

US President George W. Bush denied that Ahmadinejad’s visit undermined US efforts to isolate Tehran but had some advice for what al-Maliki should say to the Iranian leader. “He’s a neighbour. And the message needs to be, quit sending in sophisticated equipment that’s killing our citizens,” Bush told reporters at his ranch in Crawford, Texas.