UPDATE 5-Soccer-FIFA lifts Iraqi Football Association suspension

(Adds Iraqi coach's reaction, paragraphs 12-14)

By Ossian Shine

SYDNEY, May 29 (Reuters) - Iraq's World Cup qualifier against Australia will go ahead as planned this weekend after FIFA agreed to temporarily lift their suspension.

The match had been in doubt after FIFA announced on Monday it was suspending the reigning Asian champions in response to their government's decision to dissolve their National Olympic Committee.

However, FIFA agreed to revoke the ban after the Iraqi government provided written assurances that it had not dissolved the Iraqi Football Association (IFA).

FIFA released a statement on Thursday confirming it had lifted the ban so Sunday's World Cup qualifier would proceed but warned Baghdad that it was only provisional and had conditions attached.

FIFA said it still had concerns over the Iraqi government's attempts to control its national federations and has called for a delegation from the Asian Football Confederation (AFC) and the IFA to join it in Zurich to discuss the issues.

"This letter is a positive step, however it does not fully answer all of FIFA's concerns about the governmental attempts to control the Iraqi federations and the Iraqi National Olympic Committee," the FIFA statement said.

AFC President Mohamed Bin Hammam, who had led the push to suspend Iraq as part of his strong stance against political interference in sport, welcomed the Iraqi government's letter but also said it needed to reverse its decision to dissolve the country's national Olympic committee.

"This process would be completed only when the suspension imposed on the Iraq Olympic Association and all sports bodies is lifted," he said. "Only such a move can lead to re-instilling of trust in Iraqi sports."

WELCOME DECISION

Iraqi government spokesman Ali al-Dabbagh, speaking on the sidelines of an international conference on Iraq in Stockholm, praised FIFA's move as "the right decision".

But he indicated that the Baghad government stood by its decision to dissolve Iraq's national Olympic committee.

"The national Olympic committee lacks legitimacy but the Iraqi Football Association has been exempted from the cabinet's decision," he said.

Iraq's national coach Adnan Hamad said: "The decision delighted us along with Iraqi people everywhere."

He said the team were trying to get back to normal after the controversy which had had a negative impact on them.

"The main goal for the players now is to win the match on Sunday and raise Iraq's name and flag," he told Reuters.

Australia, which had stood to lose about A$3 million ($2.88 million) in ticket sales and sponsorship if the match was cancelled, welcomed the announcement the game was back on.

"This is great news," Football Federation of Australia (FFA) chief executive Ben Buckley said.

"It has always been our hope that the games could go ahead as they are critical matches in Australia's World Cup qualification preparation, and playing football is what we're here for." (Additional reporting by Mariam Karouny in Stockholm and Wisam Mohammed in Baghdad) (Reporting by Julian Linden; Editing by John O'Brien)