According to Aljazeera's correspondent, a family of 10 lived in the house. Most of those killed on Monday were residents of the bombed house, but among the dead were also two bystanders.

US forces have launched a series of air strikes on the town to destroy what they describe as safehouses used by the network of Jordanian-born fighter Abu Musab al-Zarqawi.  

The US military was not immediately available for comment on the assault. Ambulances raced to the eastern side of the town while rescue workers picked up body parts, witnesses said. 

"US jets shelled a residential house in the al-Shuhdaa neighborhood in Falluja," said police Capt Mikki Husain al-Zaidan. He had no word on casualties. 

Since 19 June, US planes have hit the town four times, killing dozens. Al-Zarqawi is believed to be behind a series of coordinated attacks on police and security forces that killed 100 people only days before US forces handed over power to an Iraqi interim government. 

US authorities on Wednesday increased to $25m the reward for information leading to al-Zarqawi's arrest, more than doubling the previous offer of US$10m.