Two high-profile women prisoners in American custody will not be released immediately, the US embassy said in Baghdad despite an earlier announcement by Iraqi authorities.

A headless corpse was found in Baghdad today hours after an al-Qaida-linked group boasted it had killed a second American hostage, leaving the Briton they are holding to face execution.

Iraqi authorities and US forces have decided to free one of only two high-profile women prisoners currently in American custody, an Iraqi ministry spokesman said today.

Iraqi authorities and US forces have decided to free one of only two high-profile women prisoners currently in American custody, a ministry spokesman said today.