Baghdad, 20 July (AKI) - Militants linked to al-Qaeda are reported to have staged a military parade in the village of Miqdadiya, in Diyala province north of Baghdad, to demonstrate their viability in the face of a massive US offensive in the area.

Despite the presence of 10,000 US and Iraqi troops in the Sunni-dominated province, more than 250 militants took to the streets in a show of force, the news agency, Voices of Iraq, said.

The news agency said the terrorists marched through the al-Muallimin quarter of Miqdadiya, around 50 kilometres from Baaquba, the capital of the province where militants linked to al-Qaeda have been under attack.

They reportedly marched in the streets thrusting their weapons in the air and carrying flags with 'Iraqi Islamic State' inscribed on them.

Earlier this week gunmen wearing military uniforms killed 29 people in Duqailiya, another village in the province and local police claimed al-Qaeda was responsible for the attack.

To counter the Americans, the militants also released a video last week to demonstrate how they were responding to the offensive.

Nearly 30,000 extra US troops have been sent to Iraq in recent months in a bid to improve security.

American and Iraqi troops are battling insurgents in and around Baaquba while the US military has begun another offensive in Anbar province to prevent a resurgence of extremism there.