Officials said U.S. commanders and officials have recommended the launch of an immediate campaign to significantly expand the Iraq Army. They said the army needs another 100,000 troops to compensate for manpower shortfalls and the prospect of a U.S. withdrawal in 2008.

"We understand and they understand that this has to happen — and sooner rather than later," an official said.

Officials said the shortage of Iraqi soldiers has been felt during the current security operation in Baghdad, Middle East Newsline reported. They said about half of the army and police units remain undermanned as commanders and soldiers have failed to report for duty.

David Kilcullen, a senior U.S. military adviser, agreed. Kilcullen, an aide to U.S. commander in Iraq Gen. David Petraeus, said the Iraq Army needs at least 20 divisions. The army has 11 divisions.

"Your progress since the beginning of the year is substantial," Kilcullen told Iraqi troops during a tour on June 3. "The trick now is putting the Iraqi structures into place. It's about sustainment and expectation management."

Kilcullen also recommended the establishment of joint security stations. The stations bring together, Iraq Army, police and U.S. troops.

"They've done a great job just setting it up," Kilcullen said. "The next step is to set up a joint operations room where they can plan operations together."

Officials said the expansion of the Iraq Army was required to confront an expected increase in Sunni violence in such areas as Anbar, Baghdad and Diyala provinces. They acknowledged that despite a surge in U.S. troops, Al Qaida has increased suicide bombings and other operations.

"Everybody knows that July and August are going to be bad months," Kilcullen said. "You should expect a spike in enemy activity. Civilian and U.S. soldier deaths will look bad. I think we'll have a hot summer. But if we break [their] backs, it might drop right after."

Meanwhile, after more than five months, Iraq's counter-insurgency operation has succeeded in achieving control over 40 percent of Baghdad.

Officials said Operation Law and Order has been hampered by a shortage of U.S. and Iraqi troops as well as Al Qaida's ability to regain control over Sunni neighborhoods abandoned by coalition forces. They said Al Qaida has managed to regenerate cells through the shuttle of insurgents and assets from the Anbar and Diyala provinces to Baghdad.

"Forty percent [of Baghdad] is really very safe on a routine basis," Lt. Gen. Raymond Odierno, the deputy U.S. commander in Iraq, said.

Over the weekend, Iraqi and U.S. units launched another offensive against Al Qaida strongholds in Baghdad. Officials said the offensive targeted Arab Jabour and Salman Pak, two Al Qaida strongholds in southern Baghdad.

In a briefing over the weekend, Odierno said 30 percent of Baghdad remained outside Iraqi control. The general said another 30 percent was undergoing "a high level of violence."

"There's about 30 percent of the city that needs work, like here in Dora and the surrounding areas," Odierno said. "Those are the areas that we consider to be the hot spots, which usually have a Sunni-Shiite fault line, and also areas where Al Qaida has decided to make a stand."

Over the weekend, Iraqi and U.S. forces were reported to have killed killed 29 insurgents and detained 52 suspects in Iraq. They included the capture of a suspected senior Al Qaida leader in Baghdad.

"Al Qaida is the Sunni violence," U.S. commander in Iraq Gen. David Petraeus said. "Al Qaida is the face of what is happening on the extremist Sunni side. They are carrying out the bulk of the sensational attacks."

Petraeus said the U.S. military has received its full compliment of more than 21,000 additional troops in Iraq. He said the extra troops provide the combat power to launch operations in Al Qaida sanctuaries.

"We are focusing on them quite intently," Petraeus said. "And the additional forces will enable us to conduct additional operations in those areas."