The key al-Qaeda operative in Iraq Abu Musab al-Zarqawi may be hiding out in the northern Iraqi city of Kirkuk, local police sources said on Saturday.

"He came to Kirkuk from Mosul," international agencies cited a source in the Kirkuk police department said, speaking on condition of anonymity. "There's a possibility that he might be captured at any moment."

"We are following him," Interior Minister Falah al-Naqib told Pentagon reporters from Baghdad. "I think we missed him twice or three times, but hopefully next time we will be able to capture him."

U.S. and Iraqi officials refused to comment the report.

The Jordanian militant has been behind many of the deadliest attacks in Iraq over the past year, including the kidnapping and beheading of several foreign hostages.