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The decision brings to an end months of debate over how the law would be applied to the oil-rich city of Kirkuk.
The law was passed unanimously but must now go before the country's three-man presidency council, headed by President Jalal Talabani.
A deadline for elections in 14 Iraqi provinces has now been set for the end of January, says the AFP news agency.
Control of Kirkuk is disputed between Iraqi Arabs, Kurds and ethnic Turkmen.
The 14 January date excludes three Kurdish provinces and Kirkuk, said AFP.
(BBC)
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