Iraqi police said on Sunday, Nasr Juma's body was found on the roadside near the town of Baiji, some 180km north of Baghdad.

Police said the body bore signs of torture as Juma's hands and legs were bound together.

Iraqi police said last month that Juma disappeared on 27 August, after assailants killed another Egyptian. Both men were working in Baiji.

Resistance groups opposing the US backed interim Iraqi government have turned to capturing foreigners as part of a campaign to force firms and foreign troops to leave Iraq.

Foreigners targeted

About two dozen foreign captives have been killed, some of them beheaded.

French journalists Georges Malbrunot and Christian Chesnot were kidnapped on 20 August by fighters from the Islamic Army in Iraq, who demanded Paris rescind a law banning Muslim headscarves in state schools.

The ban went into effect on Thursday.

The seizure of the Frenchmen stunned France because of its opposition to the US-led invasion of Iraq last year, and drew condemnation throughout the Muslim world.

Diplomatic efforts are continuing to win the men's release.