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ReutersTuesday his Sunni-backed Iraqiya alliance would intensify talks with an anti-American Shi'ite movement to try to break a political stalemate.
Iraq has been in a political deadlock since a March 7 election which produced no outright winner, raising tensions ahead of an end to U.S. combat operations this month and fuelling concerns of a return to widespread violence.
Allawi and members of cleric Moqtada al-Sadr's political group made the announcement after Iraqiya broke off negotiations with incumbent Nuri al-Maliki's Shi'ite-led State of Law alliance on Monday.
"In the next few days and thereafter, we are going to intensify our discussions to reach an important, mutual stance on what needs to be done to form the next government," Allawi told reporters at a news conference.
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