US marine killed in Fallujah fighting

Heavy fighting between US marines and Iraqi insurgents has erupted in the troubled city of Fallujah only hours after a ceasefire was extended.

Militants attacked US forces in the north of the city late yesterday, sparking a two-hour gun battle in which one marine was killed and eight wounded.

The renewed violence followed the deaths of two US soldiers at a Baghdad chemical store which blew up as they were searching it.

After the blast Iraqis swarmed over the Americans' charred Humvees, waving looted machineguns, a bandolier and a helmet.

The fighting between US marines and Sunni guerrillas raged around a mosque in Fallujah's Jolan district, a poor neighbourhood where insurgents are concentrated.

US helicopter gunships joined the battle, which sent smoke clouds over the city.

Tank fire demolished a minaret from which US officials said gunmen were firing. Secretary of State Colin Powell said a compromise was being sought in the city despite the failure of the recent truce.

He said talks were under way with civic and tribal leaders to arrange joint patrols with US and Iraqi forces. The patrols are a key part of the US effort to establish a semblance of control over Fallujah.

Meanwhile, 43 guerrillas were killed near Najaf last night, a US military spokeswoman said.