Ironically, his trip was only made possible by the U.S.-led invasion. Ahmadinejad has repeatedly called for U.S. forces to leave Iraq, blaming them for sectarian violence that has killed tens of thousands of Iraqis since 2003.
"A developed, powerful and united Iraq is to the advantage of everyone," said Ahmadinejad, the first Iranian president to visit since Iran's 1979 Islamic Revolution.
EXPELLING REBELS
Talabani said Iraq would seek to oust the Iranian rebel Mujahadeen-e-Khalq (MEK) group, a long-time Iranian demand that was expected to be raised during Ahmadinejad's visit.
"The presence of those terrorists is forbidden by the constitution and we are working to get rid of them," he said.
The U.S. military said in a statement, however, that it was not aware of any armed or organised MEK group in Iraq. It said its fighters had disarmed during the U.S.-led invasion and now lived in a camp with "protected persons" status.
Many of Iraq's Shi'ite leaders were in exile in Iran during Saddam's long rule and analysts say Ahmadinejad will use his visit to show Washington that Tehran is an influential player in Iraq that cannot be ignored.
The Iranian president has also sought to counter U.S. efforts to isolate Tehran over its nuclear programme by trying to improve ties with Arab states in the region.
His visit comes a day before an expected U.N. Security Council vote on a third round of sanctions against Iran over its nuclear programme, which Iran says is for peaceful purposes but the United States says is for nuclear arms.
Pomp and ceremony greeted Ahmadinejad on his arrival, the fanfare a stark contrast to Bush's rushed and secretive visits.
Ahmadinejad held hands with Talabani as they walked down a red carpet as a military band played their countries' national anthems. It was Iraq's first full state welcome for any leader since the U.S.-led invasion.
Ahmadinejad's motorcade drove from Baghdad's airport to Talabani's presidential palace. Visiting foreign dignitaries normally fly by helicopter to avoid the dangerous airport road.
Scattered protests were held in Baghdad and towns with sizeable Sunni Arab populations against Ahmadinejad's visit.
