The three men are to face charges of forming an armed group and conspiring to blow up Western targets, including the British and US embassies in the Yemeni capital Sanaa, the source told DPA.

The source would not provide further details on the alleged plans or when the three Iraqis were arrested.

This is the second case in which Iraqis are accused of planning attacks in Yemen, but it is the first to involve persons loyal to the regime of former Iraqi president Saddam Hussein.

A state security court in Sanaa is due to announce today its verdict in the case of a group of eight suspected Al Qaeda supporters, led by an Iraqi, charged with plotting to attack Western embassies in Yemen.

The group, which also includes two Syrians and five Yemenis, was charged with planning to attack the British and Italian embassies and a French cultural centre in Sanaa.

Among other charges the eight men face are planning to attack military bases in Saudi Arabia, as well as American civilians, Western companies, restaurants and schools in Gulf countries.