Barely hours left for the American deadline to Saddam Hussein and his sons to leave the country, US-led coalition forces in the Gulf on Wednesday took up battle positions, but a defiant Iraqi president told countrymen to be ready for the "last battle" against the US.

Thousands of US marines set off in tanks, armoured vehicles and trucks across the Kuwaiti desert to take up battle positions and messages were broadcast from US warships and aircraft telling Iraqi troops how to surrender.

With about 250,000 US and British combat troops along with massive Naval armada and hundreds of warplanes poised to attack Iraq, its parliament held an emergency session with defiant chants of support for Saddam Hussein.

US has said that even if Saddam Hussein went into exile with his two sons Udai and Qusai, its forces would enter into
Iraq to hunt for weapons of mass destruction.

Saddam Hussein himself appeared on television dressed in military uniform and asked his commanders to prepare for the battle.

"This battle will be Iraq's last battle against tyrannous, villainous and last battle of aggression undertaken by America against Arabs," he declared.

Iraqi Parliament held an extraordinary meeting to discuss the situation. Speaker Sadoon Hammadi denounced the deadline and said: "We reject and condemn this insolence, aggression and violation of laws ... Iraq is not the kind of country or people that can be dictated on what to do as said by the president of the American administration."

Iraqi television and state-run radio called on Iraqis to demonstrate across the country to show their support for Saddam, who has been ruling the country with an iron fist for the last 23 years.

Most countries have moved their embassy staff out of Baghdad with Greek and French diplomats travelling by road to Jordan. The Chinese, German and Czech officials left early this week.

UN weapons inspectors, whose job was cut short by the Bush ultimatum, left on Tuesday.