The Iraqi government has rejected the findings of a US military investigation into the deaths of 11 civilians in the village of Ishaqi, north of Baghdad.
Iraq is carrying out its own investigation into Ishaqi
A spokesman for Iraqi Prime Minister Nouri Maliki said the report, which cleared the US soldiers of wrongdoing, was unfair.
The government will demand an apology and compensation, the spokesman said.
The US said allegations the troops had deliberately killed a family and then covered it up were "absolutely false".
A report filed by Iraqi police accused US troops of rounding up and deliberately shooting 11 people in the house in Ishaqi, including five children and four women, before blowing up the building.
The US military report, issued on Friday evening, said four bodies including that of an insurgent were found after the raid in March and acknowledged there were up to nine "collateral deaths".
However, it concluded the US soldiers had behaved correctly.
The outcome of the Pentagon investigation emerged a day after the BBC released video footage that appears to show the aftermath of US action in Ishaqi, about 100km (60 miles) north of Baghdad.
The video shows a number of dead adults and children at the site with what our world affairs editor John Simpson says were clearly gunshot wounds.
Other incidents are being investigated by the Pentagon.
One inquiry is looking into an alleged massacre at Haditha last November, in which 24 civilians were killed.
A report in the New York Times newspaper says Marines commanders learned within two days that civilians in Haditha had died from gunfire, but saw no reason to investigate.
It had initially been reported that the 24 civilians had died in a roadside bomb.
The commanders told investigators they had not seen anything unusual in the differing accounts of the incident, and that they had no information at the time to suggest any civilians had been killed deliberately, the newspaper reports.
Mr Maliki has said he will ask the US for the investigative files into the incident.
Another Pentagon investigation is looking at an incident in Hamdaniya, where an Iraqi man is alleged to have been deliberately killed on 26 April - and that the circumstances were covered up.
Seven Marines and a navy sailor are being held at a military base in California over the killing.
One of their defence lawyers has said they are expected to be charged in relation to the incident, reports say.