"Time for a peaceful solution to Fallujah has passed," said Allawi at a news conference. "We are determined to clear Fallujah from terrorists."

Early on Monday, US troops and Iraqi special forces stormed the western districts of Fallujah, 50 km west of Baghdad, and seized the main city hospital and two key bridges over the Euphrates River.

Allawi said Iraqi forces had taken control of Fallujah hospital,killing 38 rebels in the process.

"We do not know whether they are Iraqis or not. They were stationed in the hospital in order to carry out terrorist actions,"he said.

But he revealed that two of the foreign terrorists seized were from Morocco.

The prime minister also told reporters that Iraq's borders with Syria and Jordan will also be closed off and Baghdad's international airport would be shut down for 48 hours.

"Once again, we have seen more criminal acts committed by these terrorists who continue to use Fallujah as a base for their operations ... We have no option but to take necessary measures to protect the Iraqi people from these killers and liberate Fallujah,"he said.