U.S. President George W. Bush said on Thursday that he would announce his new Iraq policy next week.

Bush made the announcement at a press conference after his meeting with visiting German Chancellor Angela Merkel in the White House.

"I will be ready to outline a strategy that will help the Iraqis achieve the objective of a country that can govern, sustain and defend itself sometime next week," Bush said.

"I will want to make sure the mission is clear and specific and can be accomplished," Bush said.

Bush has met with top-ranking State Department, Defense Department and military officials, as well as U.S. Ambassador to Iraq Zalmay Khalilzad and outside experts for the new Iraq strategy.

Moreover, Bush has said earlier that the new Iraq strategy will be based on the recommendations of separate studies from the Pentagon, State Department and National Security Council as well as the bipartisan Iraq Study Group.

Bush has been under pressure to outline a new Iraq policy as both U.S. casualties and death of Iraqi civilians have been rising in Iraq.

Also in their meeting on Thursday, Bush and Merkel discussed issues including Iran, the Middle East peace process, Afghanistan, Lebanon and others.

"We talked about Iran. And I thanked Chancellor Merkel's strong support for a Chapter 7 Iranian resolution -- a Chapter 7 United Nations Security Council resolution on Iran," Bush said at the press conference.

The U.N. Security Council passed a resolution in December to impose sanctions on Iran for its defiance over its nuclear programs. Germany has been a key player in negotiating the resolution.

"We're going to continue to work together on the Iranian issue. It's important for us to follow through in order -- on this Chapter 7 resolution in order to solve this issue peacefully," Bush said.

Bush said he also discussed the Israeli-Palestinian issue with Merkel and he agreed with her to convene the quartet, or the United Nations, the United States, Russia and the European Union, at an appropriate time.

The United States is committed to a two-state solution with Israel and Palestine living side by side in peace, Bush said.

For her part, Merkel hailed the cooperation between the two sides.

The visit "is clearly an expression of the fact that we share values, that there are a lot of common interests between our two countries, and that there is also a lot of need for enhanced cooperation between the European Union and the United States of America," Merkel said.

Germany has been an important U.S. ally and relations between the two countries have been greatly improved since Merkel took office in late 2004. 

Editor: Yan