United States President George W Bush has announced a major overhaul of immigration policy that would give millions of illegal immigrants with US jobs temporary worker status and then a chance to seek citizenship.

"Out of common sense and fairness, our laws should allow willing workers to enter our country and fill jobs that Americans are not filling," Bush said in a speech outlining the changes from the White House East Room on Wednesday.

The new 'guest worker programme' will offer legal status, as temporary workers, to about eight million undocumented workers now employed in the US and to those in foreign countries who seek to participate in it and have been offered employment here, Bush said.

The programme, which requires Congressional approval, would enable illegal immigrants holding a job unwanted by US citizens to work in the country for three years.

Guest workers will be free like any other foreigner to apply for permanent resident permits, commonly known as the green cards, which are stepping stones to citizenship.

Bush also urged the Congress to increase the number of green cards issued every year. At present, the number is 140,000.

The plan is expected to boost Bush's prospects with Hispanic voters during the November Presidential elections as half of the illegal immigrants are estimated to be from Mexico.

Illegal immigrants currently in the US can avail of the guest worker scheme if their labour is needed by an employer, after paying a fee.

Those outside the US can also avail of it without paying the fee provided they find an employer in the US to do a job for which American workers are not available.

With a guest worker card, they can travel back and forth to their homelands.

"Workers who seek only to earn a living end up in the shadows of American life --fearful, often abused and exploited. When they are victimised by crime, they are afraid to call the police, or seek recourse in the legal system.

"The situation I have described is wrong. It is not the American way... We must make our immigration laws more rational, and more humane. And I believe we can do so without jeopardising the lives of American citizens."