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Iraq’s most wanted terrorist, the Jordanian militant Abu Musab al-Zarqawi, is hiding out in the northern Iraqi city of Kirkuk after fleeing from Mosul, according to police sources.

The claim comes barely days after the Iraq’s interim government said that it was close to catching the jihadist, whose group has been behind the beheadings of foreign hostages, including Briton Kenneth Bigley, and suicide bombings.

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