BAGHDAD, Iraq - The United States will hand legal custody of Saddam Hussein and an undetermined number of former regime figures to the interim Iraqi government as soon as Iraqi courts issue warrants for their arrest and request the transfer, a U.S. official said today.

However, the United States will retain physical custody of Saddam and the prisoners, while giving Iraqi prosecutors and defense lawyers access to them, the official said on condition of anonymity.

The Americans will continue to keep Saddam and others locked up and under U.S. guard because the Iraqi government does not yet have capacity to hold such prisoners, the official said.