French Foreign Minister Bernard Kouchner has offered to apologise to Iraq if he had meddled in its affairs.
The statement comes a day after Iraqi Prime Minister Nuri Maliki demanded an official apology because Mr Kouchner had suggested he resign.
Meanwhile President Nicolas Sarkozy has called for a clear timetable for the withdrawal of foreign troops from Iraq.
He was making what was described as his first major foreign policy speech since becoming president in May.
Mr Sarkozy said such a timetable would force the various Iraqi parties to accept responsibility for the country's future.
'Fresh look'
"If the prime minister wants me to apologise for having interfered so directly in Iraqi affairs, I'll do it willingly"
In an interview with RTL radio on Monday, Mr Kouchner said: "I think that he [Mr Maliki] misunderstood, or that I was not clear enough that I was referring to comments I heard from Iraqis I talked to."
"If the prime minister wants me to apologise for having interfered so directly in Iraqi affairs, I'll do it willingly," he said.
Mr Kouchner visited Baghdad last week to promote France's role in efforts to solve the Iraq crisis and mend relations with Washington damaged by France's opposition to the 2003 US-led invasion of Iraq.
In an article in Monday's International Herald Tribune, Mr Kouchner said France was well-placed to "provide a fresh look" at Iraq.
"A broad-based government of national unity must be established," he wrote. "France is prepared to act as a mediator in this endeavour."
'Magnificent performance'
On Sunday, the White House welcomed a new pledge by Iraqi leaders to take steps to help national reconciliation.
Leading Shia, Kurdish and Sunni politicians signed a reconciliation deal on Sunday and held further talks where they reported progress towards agreement on holding provincial elections and easing a ban on former Baath party members.
But there was more criticism from US politicians, with Republican Senator John Warner saying Mr Maliki and his government had utterly failed to improve security while US troops had performed "magnificently".
Mr Warner said the Senate would wait for next month's update on the US troop surge, supposed give the Iraqi government extra time to make political progress, before making any moves.
But he added that US military support for Iraq's Shia-led government must be re-evaluated because of what he said was its failure to deliver greater security and sectarian reconciliation.
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