WASHINGTON, Oct 19: US President George Bush said on Monday that he would grudgingly accept an "Islamic" government in Iraq, if the Iraqi people voted to create one in free elections.

"I would be disappointed, but democracy is democracy," Mr Bush said in an interview with the Associated Press, when asked about the possibility that Iraqis might some day prefer an Islamic government to secular rule.

"If that's what the people choose, that's what the people choose," the president added.

The interview took place aboard Air Force One as Mr Bush travelled to New Jersey.

Mr Bush's rare reference to the prospect for Islamic rule appeared to clash with previous remarks from an administration that rejected popular calls for an Iranian-style Islamic state in Iraq soon after the fall of Saddam Hussein's government.

A senior official said the president had long believed that Islam is compatible with democracy.

The president, whose administration once called for the killing or capture of radical Moqtada al Sadr, has since said he would not oppose a political role for the religious leader, who wants to establish a Shia-dominated government.-Reuters