Deposed Iraqi ruler Saddam Hussein, who was captured by US forces, will be tried in a special court in Iraq, the head of the country's Governing Council has said.

Abdul Aziz al-Hakim on Wednesday said international monitors could observe the proceedings, which would take global standards into account.

Hakim was speaking at a news conference after talks with the British Foreign Secretary Jack Straw.

Asked whether Saddam Hussein would face death penalty, he said it was up to Iraq to make its own decisions as a sovereign nation.

"He will be tried and after that we will do what the judge and the court will decide," he said.

Earlier, another member of the council, Mowaffaq al-Rubaie, said Saddam Hussein was being held in an area in greater Baghdad following his capture.

The United Kingdom is against the use of the death penalty, while US President George Bush has said the ex-Iraqi leader should pay the 'ultimate penalty' -- a signal that he favoured execution.

Both Britain and the US, however, have stressed that it is up to Iraqis to decide the fate of their ousted leader.