Baghdad: A suicide bomber dressed as a policeman killed at least six people on Saturday when he blew himself up outside a police recruitment centre north east of Baghdad, an Iraqi army source said.

The source said 30 people were wounded when the bomber detonated his explosives beside a queue of people waiting to enter the recruitment office.

A separate witness said the death toll was much higher from the attack in Al Muqdadiya, 90km north east of Baghdad.

The town is in Diyala province, where thousands of US and Iraqi troops have launched a major drive against Al Qaida militants, blamed for devastating suicide attacks which have tipped the country to towards a civil war.

Meanwhile, US forces have found around 40 bodies, bound and bearing gunshot wounds, in a mass grave south of the former rebel town of Fallujah in western Iraq's Anbar province, the military said on Saturday.

"A local Iraqi citizen's tip led coalition forces to the site of a mass grave late Friday evening outside Ferris, approximately 35 kilometres south of Fallujah," the military said in a statement.

"Coalition forces uncovered 35 to 40 bodies at the site. The remains were bound and had gunshot wounds," it added.