Baghdad: A law paving the way for fresh local elections, seen as vital for reconciliation among Iraq's warring political factions, will be enacted soon, the country's presidential council said on Wednesday.

Provincial elections are seen as a chance to draw more disenfranchised Iraqis, especially minority Sunnis, into the political process and away from the insurgency and sectarian violence that has killed tens of thousands in five years of war.

The passage of Iraq's provincial powers law, which will define the relationship between Iraq's 18 provinces and the central government, had been held up by objections from presidential council member Vice-President Adel Abdul Mahdi.

"The presidential council has decided to withdraw its objections on the provincial powers law and [it] will be sent to the Justice Ministry to be published in the Iraqi gazette," a statement from Iraq's presidency said.

The unexpected announcement by the council came as a two-day reconciliation conference in Baghdad came to an anti-climactic end after major blocs boycotted the poorly attended event.