THE Iraqi Embassy is to be contacted by a Derby city councillor asking for part of a famous statue of Saddam Hussain to remain in the UK.

The 2ft lump of bronze, from the figure's buttocks, is currently being hidden in a secret location.

It was picked up by ex-SAS soldier Nigel Ely in April 2003, when jubilant Iraqis pulled down the statue in Baghdad.

Mr Ely was later arrested, along with friend Jim Thorpe, after the Iraqi government launched a legal battle demanding its return, claiming it is a piece of "cultural antiquity".

Mr Ely and Mr Thorpe said they wanted to sell it to raise money for military charities.

Councillor Joe Naitta said he supported Mr Ely and Mr Thorpe, having met them to discuss the situation.

He said: "As an ex-soldier myself, I am passionate about the financial support injured soldiers should receive.

"On this topic I have the greatest respect for anyone who gives their time to raise funds and awareness for the people who have fought for peace and have themselves become a victim of war."

A company, Trebletap, was set up by Mr Ely to handle the sale of the relic. Its offices are in Alfreton Road, Derby.

The buttock was brought back to the UK with the hope of being sold to raise money for military charities – but it failed to fetch its £250,000 reserve price at auction.

It is now being hidden so it cannot be confiscated by police.

Mr Naitta said it was after a visit to the Trebletap offices that he decided to contact the Iraqis.

He said: "I feel so strongly about this that I am personally going to contact the Iraqi embassy and, provided Trebletap agree, try to reach a compromise that suits both parties.

"The buttock is currently on the run but its value is continually increasing in proportion to the media attention."

He added that he could not understand why police had taken action against Mr Ely and Mr Thorpe.

He said: "Sadly, there are never any winners in war. Grief and unrest falls undoubtedly upon all parties as families and civilians suffer the loss of sons, daughters and loved ones.

"Reaching an amicable conclusion on this issue would show hope and compassion, of which bridges can be rebuilt for all our futures."

Mr Thorpe said: "Mr Naitta's visit to Trebletap resulted from two Derbyshire residents asking him to take an unbiased look at Trebletap and if he thought it warranted it, to see if he could try to defuse a situation that is currently escalating out of all proportion.

"Once Mr Naitta had assured himself that nobody at Trebletap had or would make any personal profit out of the company and after recognising the amount of work that had been put in by volunteers, he made his suggestion to contact the Iraqi embassy."

Last month, Mr Ely and Mr Thorpe were arrested by Derbyshire police on suspicion of breaching the Iraqi Sanctions Order, which means it is illegal to remove "cultural property" from the country.

They have been bailed until March.

A Derbyshire police spokeswoman said that officers were still searching for the relic.

She said: "Inquiries are ongoing."