BAGHDAD (AP) - Iraq plans to move members of an Iranian opposition group from a camp north of Baghdad to remote areas elsewhere in the country as it steps up efforts to rid itself of a major source of tension with Tehran, a top government official said Friday.

Iraq's Shiite-led government has long sought to get rid of members of the People's Mujahedeen Organization of Iran, which fought alongside Saddam Hussein's forces during the 1980-88 Iran-Iraq war and is considered a terrorist organization by the United States as well as Tehran.

Iraq's efforts have taken on new urgency as the U.S. military has turned over responsibility for the camp's security to the Iraqis, raising concern about the residents' future.

National Security Adviser Mouwaffak al-Rubaie gave no timeframe for the move and reiterated government promises not to deport or forcibly expel the exiles. But he warned that they must leave Iraq eventually.

"The residents should understand ... that their days in Iraq are numbered and we are literally counting down," al-Rubaie told reporters at a news conference. "We will not use force ... unless the residents use force against the Iraqi security forces. This whole process will be pain-free if they cooperate."

But the Paris-based political arm of the Mujahedeen denounced Iraq's plan and vowed that the camp's residents would never leave.

"It is setting the stage for a human catastrophe," the organization warned of Baghdad's plan, adding that any attempt to forcibly expel the camp's residents from Iraq or move them elsewhere in the country would constitute a violation of international conventions.

Mujahedeen spokesman Shahin Gobadi said al-Rubaie's comments were "absolutely illegal" and in violation of international law.

Saddam allowed the Iranian exiles to establish their base north of Baghdad in 1986 to launch raids into Iran.

At the same time, many Iraqi Shiites fled to Shiite-dominated Iran. Some of them fought on the Iranian side against Iraq. But U.S. troops disarmed the fighters and confined them to Camp Ashraf after the 2003 invasion of Iraq.

Al-Rubaie said the group's removal was an important step in Iraq's efforts to improve relations with Iran.

"We want to solve all problems with our neighbors," he said, and also pointed to the issue of separatist Kurdish rebels attacking Turkey from bases in northern Iraq.

"We want to create a network of interest between Iraq and Iran," he said. "We don't want to give Iran any excuse to meddle in our affairs."

The relocation also would remove Camp Ashraf from its current, sensitive position about 50 miles (80 kilometers) from the border with Iran. Al-Rubaie did not say where the residents would be moved to.

The United States, which maintains a contingent at Camp Ashraf to monitor the situation, wants the Iranians to be treated humanely and not forced back to Iran where they could face danger.

Underscoring the American interest in the issue, five U.S. representatives, including two embassy public affairs officials, were present at Friday's briefing.

The opposition group's political wing, the Paris-based National Council of Resistance of Iran, had no immediate comment but has frequently accused al-Rubaie of lying and trying to oust the group to appease Tehran.

Al-Rubaie said the strategy was to prod the nearly 3,500 members of the People's Mujahedeen to leave the country peacefully by separating the vast majority of residents from a small group of about 15 to 20 militant commanders to eliminate their influence.

"Our focus now is on removing the group as quickly and as rapidly as possible and in a human manner," he said. "The party is over for the coalition protection of them. We are protecting them now."

Al-Rubaie frequently has taken a hardline against the Iranian opposition group and said in late January that the members had two months to return to Iran or move to a third country.

He refused to give a deadline Friday but said 984 of the 3,418 residents hold documents linked to a third country - including 63 from the United States - and the government was talking to U.S. and European ambassadors about accepting them.

The European Union decided in late January to remove the People's Mujahedeen from its terror list and lift the restrictions on its funds - a decision condemned by Iran.

The Iraqis had arrest warrants for three people and the U.S. had arrest warrants for two, al-Rubaie said. He also quoted the Iranian ambassador as recently saying Tehran had arrest warrants for more than 50 of the residents.

He acknowledged "it's a very complicated and difficult problem" but promised all moves would be monitored by the United Nations and the Red Cross. He didn't say what would happen if residents refused to go voluntarily.

He said Camp Ashraf has 3,418 residents, including 900 women, on 30 square miles (50 square kilometers) of territory, and also alleged they have been "brainwashed" and need to be "deprogrammed."

He said Iraq was talking to third countries he did not identify about taking in the exiles. He said the government plans to issue them all Iranian passports - with Iran's help - and buy them a one-way air tickets and give them $1,000 each.

"This will reduce the problem by about a third. At least it will break the deadlock," al-Rubaie said.