Hoon told BBC radio that he could not confirm that the airport had been taken but he said "the most important aspect" of allied forces seizing airport, which is close to the Iraqi capital, is that it would be "a huge psychological blow to the regime."

"It demonstrates to the regime and we hope as well to the people of Baghdad that we're there," he said.

"We know they've been told by elements of the regime, the leadership that there are no coalition forces anywhere near Baghdad. They will be able to see for themselves soon how untrue that is," Hoon said.

Hoon said: "I understand American forces do control a significant proportion of the airport but as yet I can't confirm that the airport has been taken."

US troops continued to exchange heavy gunfire and artillery fire with Iraqi troops in and around Baghdad's Saddam International Airport on Friday, an AFP correspondent reported.

The fighting, which raged as the troops attempted to gain full control of the facility, began at about 7:30 am (0330 GMT), shortly after US forces said they had seized about 80 percent of the sprawling civilian and military airport complex.

Hoon said "we've also got to allow for the possibility" that large numbers of elite Iraqi Republican Guard troops have "retreated into the city (Baghdad) and are preparing their defenses."

He said taking the Iraqi capital remained "a significant military challenge which is why I (and) others have been warning not to anticipate too quickly the end of the regime."

He warned about "fierce fighting, some serious resistance that may occur again in and around Baghdad."

The BBC had earlier interviewed Iraqi Foreign Minister Naji Sabri who said Iraqi President Saddam Hussein was alive and well but refused to say if he had seen him recently.

"The president is well, the leadership are well and they are leading and functioning as normal," Sabri said.

When asked if he had seen Saddam, Sabri said curtly: "It's not your business to ask these questions for me."

Hoon said Sabri's comments were "another indication of some serious dislocation of the top of the leadership in the regime."

"Whether that means that Saddam Hussein is alive or dead, I simply do not know," Hoon said.

He said "at this stage, it doesn't help to speculate... it may mean the center of power is no longer available."

SPACE.WIRE