President Mahmoud Ahmadinejad flew to Baghdad today for the first visit by an Iranian president since the two neighbours fought a bitter war in the 1980s and said his trip marked a "new chapter" in relations.
Iraqi President Jalal Talabani told a joint news conference that Iraq would seek to oust Iranian rebels based in Iraq, a long-time Iranian demand that was expected to be raised during Mr Ahmadinejad's two-day state visit.
Mr Ahmadinejad's trip is expected to be as much about symbolism as it will be about cementing ties between the neighbours, which are both run by Shia majorities. It will be closely watched by Washington, which has more than 150,000 troops in Iraq.
"This visit will open a new chapter in the two countries' bilateral relations and it will help the atmosphere of cooperation in the region," Mr Ahmadinejad told reporters at Talabani's home in Baghdad's central Karrada district.
"A visit to Iraq without the dictator is a truly happy one," he said, referring to Iran's arch-foe Saddam Hussein, who was deposed in the US-led invasion in 2003.
Mr Ahmadinejad, whose government is at odds with Washington over Tehran's nuclear programme, has repeatedly called for US forces to leave Iraq, blaming them for violence that has killed tens of thousands of Iraqis since the 2003 invasion.
"A developed, powerful and united Iraq is to the advantage of everyone," Mr Ahmadinejad said.
Standing next to Mr Ahmadinejad, Mr Talabani said Iraq was trying to expel the Mujahadeen e-Khalq group, the largest and most militant group opposed to Iran.
"The presence of those terrorists is forbidden by the constitution and we are working to get rid of them," he said.
Iraqi state television footage earlier showed Iraqi Foreign Minister Hoshiyar Zebari warmly embracing Mr Ahmadinejad, the first Iranian president to visit since the 1979 Islamic Revolution, on his arrival at Baghdad international airport.