DIWANIYAH, Iraq (AP) - The top U.S. general in Iraq acknowledged today that American forces in this country are “stretched,” but he said he will recommend withdrawals based only on operational needs.

Gen. George Casey told reporters he had discussed the issue with Gen. Peter J. Schoomaker on Wednesday and that the Army chief of staff believes he can still sustain the mission in Iraq.

“The forces are stretched ... and I don't think there's any question of that,” Casey said. “But the Army has been for the last several years going through a modernization strategy that will produce more units and more ready units.”

He reiterated he would only recommend reductions in the more than 130,000-strong U.S. military presence in Iraq based on the situation on the ground.

On Tuesday, The Associated Press reported an unreleased study conducted for the Pentagon said the Army was being overextended because of the wars in Iraq and Afghanistan, and may not be able to retain and recruit enough troops to defeat the insurgency in Iraq.