Iraqi Prime Minister Nouri al-Maliki says plans are in the works to encourage tens of thousands of refugees to return home.
Mr. Maliki met with Swedish officials Friday, one day after a UN-backed conference in Stockholm on rebuilding Iraq.
He said the Iraqi government has earmarked funds as part of an effort to make Iraq more attractive to citizens who sought asylum in Europe and elsewhere.
Sweden says it has taken in more than 40,000 Iraqis over the last five years.
Meanwhile, U.S.-led forces in Iraq say they have made more gains in their battle against al-Qaida in Iraq.
A spokesman says forces killed a suspected al-Qaida arms dealer and captured three key members of al-Qaida's bombing network in a series of operations across the country Friday.
The military also said Friday a U.S. Marine had been removed from duty after Iraqis in Fallujah complained he was handing out coins that quoted verses of the Christian Gospel.
A spokesman says an investigation is underway. A military statement said U.S. troops are prohibited from "proselytizing any religion, faith or practices."