Iraq and Kuwait have agreed on ways to resolve disputes that arise when Iraqi fishermen enter what Kuwait alleges are its territorial waters, Baghdad's government spokesman said on Tuesday.

Ali al-Dabbagh's remarks followed a January 10 clash between Kuwaiti coastguards and Iraqi fishermen that left one Kuwaiti dead.

Kuwait's interior ministry said the clash began when the fishermen entered its territorial waters.

"We have put in channels to avoid cases where our fishermen are subjected to difficulties and problems while doing their job," Dabbagh told AFP.

"We have implemented channels of communication with the Kuwaitis... They have set up a way for our fishermen to know their limits (geographically), and if there are any problems, they are open and clear channels to resolve them."

Dabbagh did not elaborate on the mechanisms to resolve disputes, but said that they had been initially agreed when Kuwaiti Prime Minister Sheikh Nasser Mohammad al-Ahmad al-Sabah visited Baghdad last month, with a technical team working out the specifics.

He noted that there were still four Iraqi fishermen being held by Kuwait in relation to the January 10 incident, adding: "The (Iraqi) minister of foreign affairs is trying to solve this problem with the Kuwaitis."

Last month, Dabbagh had said the boat was fired on by Kuwaiti coastguards and sank.

Kuwait's interior ministry, meanwhile, said a Kuwaiti coastguard was killed in a shootout with Iraqi sailors inside Kuwait's territorial waters.

The clash erupted when an Iraqi boat entered Kuwaiti waters and refused orders from a coastguard patrol to stop, the ministry said.

Kuwait's coastguards often seize Iraqi fishing boats and detain Iraqi fishermen for illegal entry into its waters. In October, Kuwait arrested 13 Iraqi fishermen.