The Iraq government is considering the release of some 5,000 prisoners but a spokesperson said it would not include terrorists or homosexuals.
The Iraqi government has about 20,000 people in custody, while the U.S. military holds about 25,000.
Homosexuality itself is not illegal in Iraq, but police regularly arrest gays on other charges often trumped up.
The amnesty bill drafted by the Shiite-dominated government falls far short of Sunni demands. About the only thing on which the two sides agree is that imprisoned gays not be freed.
The amnesty would cover less than a quarter of the total number of people held in Iraqi prisons, and none of those held by the American military.
The total number of gays being held is not known. And, they may be the lucky ones, according to some LGBT activists.
Death squads imposing strict Islamic law are reportedly responsible for the murders of hundreds of gay men across Iraq.
Last year the leader of an exiled Iraqi LGBT rights group told a London conference on homophobia that that militias blamed for the murders of hundreds of gay men and women are sanctioned by the government and the US-led coalition is doing little to stop the killings. (story)
Also see gayiraq.info