The Defense Ministry proposed the extension at a recent security ministers' meeting held at the presidential office, the mass-circulation Dong-a Ilbo newspaper reported, citing an unnamed government official.

The proposal is being weighed positively, it said.

Washington wants Seoul to extend the troop deployment. U.S. President George W. Bush essentially asked for it at a summit with South Korean President Roh Moo-hyun last week, saying the South Korean contingent in Iraq has a high reputation for its expertise, and he wants "continued cooperation" from Seoul, according to Roh's office.

On Wednesday, Bush also called Roh to explain his new Iraq policy.

The ministry plans to submit a report to parliament later this month on when to end the troop presence. The paper said the report is expected to center on extending the dispatch, while cutting the troop levels to about 800 from the current 1,200.

Another local daily, Kukmin Ilbo, carried a similar report that cited an unidentified government official saying it is difficult to withdraw the troops this year because the country needs U.S. help in resolving the international standoff over North Korea's nuclear programs.

The ministry denied the reports, saying no decision has been made yet.

But the commander of the South Korean unit in Iraq, Maj. Gen. Yoon Young-bum, called for extending the mission, saying its presence would help South Korean businesses expand to the oil-rich country, according to local media reports published Thursday.

Extending the troop presence requires parliamentary approval. Considering the generally negative public view of the mission, heated debates are expected at parliament if the government decides to extend it.

The South Korean troops have been stationed in Iraq on a reconstruction mission since 2003.

The troop levels once reached 3,600 _ which made Seoul Washington's biggest coalition partner after Britain _ but gradually declined amid rising public opposition to the mission.