17 killed in Iraqi army canteen attack

"A massive explosion took place at about 1:00 pm (0900 GMT) inside a base in Khales and there are several dead and wounded," said Colonel Abdullah al-Shammari, an army spokesman.

An official at the Iraqi defense ministry confirmed the lunchtime attack and said all 17 dead were soldiers.

Most of the casualties were rushed to hospitals in Baquba, the provincial capital southeast of Khales.

An Iraqi soldier helping transport the casualties to Baquba said the attack was carried out by a man dressed as an Iraqi soldier. The hospital said it only received 12 wounded so far.

In mid-April half a dozen Iraqis, most of them policemen were killed in a bomb attack against a restaurant in Baquba.

Meanwhile Australian Prime Minister John Howard announced Wednesday that Australian hostage Douglas Wood has been rescued from his captors in Iraq after a six-week ordeal.

Howard told parliament that Wood was in the hands of the Australian authorities in Baghdad and was undergoing medical checks, but was well.

"I am delighted to inform the house the Australian hostage in Iraq, Mr Douglas Wood, is safe from his captors," Howard said.

"I understand that he is well, he's undergoing medical checks at the present time."

Howard did not detail how Wood was released but an Iraqi government spokesman in Baghdad said Iraqi soldiers had helped in the operation that freed the Australian.

Howard said the Australian had "suffered immensely" during his captivity.

Australia sent an emergency response team to Baghdad after Wood, 63, a US-based contractor, was seized in late April by a rebel group calling itself the Shura Council of the Mujahedeen of Iraq.

The group initially demanded Australia pull its troops out of Iraq in exchange for Wood's life, but the demand was rejected and was then apparently dropped by the militants.