An American plan to "stay" in Iraq has been "torpedoed" by Shia religious clerics.
A deal allowing American Marines to operate in Iraq is in disarray after Iraq's top Ayatollahs moved to block the US.
Most revered Shia religious authority in Iraq, Grand Ayatollah Ali Sistani, said he will "not allow" military agreement between United States and the Iraqi government.
Despite many requests from US officials, Sistani has refused to meet Americans.
Washington had hoped to sign a pact with Iraq permitting US forces to "stay" in the country and conduct "operations".
But the powerful Shia Cleric has issued a decree "forbidding" Iraqis from accepting such a pact.
Ayatollah Sistani said he would "not allow" Prime Minister to sign such a deal. Sistani said he cannot permit such a deal with an occupying army "as long as he is alive".
Another leading Iraqi cleric, Ayatollah Kazim Husayni Al Harry, has condemned the US for making attempts to control Iraq.
Ayatollah Harry said deal is designed to give immunity to American criminals, mercenaries and "even US dogs".
"American dogs" will not be given immunity under any agreement, said Harry.
A third powerful Shia Cleric in Iraq also voiced his strong opposition to the US draft agreement.
Grand Ayatollah Mohamed Taqy Moderessy blasted the Iraqi government for even considering the American deal.
Moderessy threathened "violence" if the deal goes ahead. There will be "uprising" if the pact is signed.
Ayatollahs or the "Signs of God" are widely respected and followed through Iraq. These holy men wield more power than the politicians.
The proposed U.S deal has already triggered street protests in Iraq.
Iran has also criticised the treaty and US plans to occupy Iraq. Iranian leader told the Iraqi Prime Minister that the deal would disgrace the Iraqi people. Iranian Supreme Leader Ali Khamenei told Nuri Maleki that biggest problem in Iraq are the Americans. He said US role in Iraq is same as that of British rulers who had once occupied Iraq in the early 20th century.