The attack, in which hostages are believe to have been taken, in Diyala
province's capital was the latest on a government building to test Iraqi
forces as they prepare for the planned withdrawal of US troops at the year
end.
Iraqi forces surrounded the council building where gunmen were still inside
with some members of the provincial council, police and local politicians
said.
Police said at least eight people were killed in the attack in which a car
bomb exploded and a suicide bomber detonated his explosives before gunmen
assaulted the building.
A source at Baquba hospital said they had received two bodies, but ambulances
could not reach other victims because of the shooting.
Diyala, 65 miles (40km) from Baghdad, is a volatile area where al Qaeda
affiliates and other militia are still active.
Violence in Iraq has eased since the peak of bloody sectarian fighting in
2006-2007, but Sunni and Shi'ite militias still carry out daily bombings and
killings.
Gunmen stormed a provincial council headquarters in Tikrit in March, taking
hostages before security forces ended the siege. At least 53 people were
killed in the attack.
