Iraq will tomorrow finally open its second parliament since the US-led ouster of Saddam Hussein, the latest step in a more than three-month saga since elections that failed to usher in a new government.

The opening session of the 325-seat Council of Representatives marks the first tangible step forward for the war-battered country's fledgling democracy since nationwide polls on March 7 resulted in political deadlock.

Diplomats and politicians, however, warned ahead of tomorrow's opening that a new government continues to appear some way off, and that it may be several months before the fine detail on the country's new leaders takes shape.

US forces are steadily being pulled out of Iraq and a new administration in Baghdad is seen as key to a smooth withdrawal of all American troops - 88,000 remain in country - by the end of 2011.

Former premier Iyad Allawi's Iraqiya bloc won most seats, 91, in the election, followed closely by Prime Minister Nuri al-Maliki's State of Law Alliance, which won 89.

Despite losing, Maliki has battled to hold on to his post, calling for multiple recounts of ballots he said were fraudulent, which delayed the certification of results until earlier this month.

State of Law has also formed a coalition with the election's third-placed grouping, the Iraqi National Alliance (INA), in a bid to cancel out Allawi's narrow lead.

But the newly created National Alliance remains four seats short of the 163 seats it needs for a majority in the 325-seat parliament, and has yet to name a leader it will put forward for the post of prime minister.

As a result, the selection of a new parliamentary speaker and president - meant to precede the naming of a new premier - is likely to be part of a grand bargain between Iraq's competing political blocs and religious groups.

And that will further delay the formation of a new government.