A reprieve is understood to be among the central demands of Sunni nationalists and former members of Saddam’s Ba’ath party who have reportedly begun negotiations with the government amid the backdrop of a bloody insurgency which claimed 30 lives during the weekend.

Officials say they are looking for a way of joining the political process after January’s election, which was boycotted by most Sunnis.

“We are trying to reach out to the insurgents,” the source said. “We don’t expect them to stop fighting unconditionally. Sending Saddam to prison for the rest of his life is not a huge price for us to pay, but it will save them a lot of face.”

The official said those involved in the negotiations included senior members of Saddam’s Fedayeen militia and the Jaish Mohammed, a grouping of former army officers that operates under the guise of an Islamist organisation.

But it is unclear if those at the talks genuinely represent a majority of the deeply fragmented insurgency. While a deal could represent an important step towards ending the violence that has plagued postwar Iraq, a reprieve for Saddam would infuriate many in the country. He is unlikely to come to trial before the end of this year, but Jalal Talabani, Iraq’s new President, has already begun to prepare his people for a possible reprieve.

Asked about the fate of Saddam in an interview yesterday in the pan-Arab newspaper Asharq al-Awsat, the President, who is a Kurd, stated his personal opposition to a death sentence.

“I am among the lawyers who signed an international petition against the death penalty around the world and it would be a problem for me if Iraqi courts issued death sentences,” he said. Though Talabani’s powers are largely ceremonial, he has the power, as the head of a three-man presidential council, to commute death sentences.