WASHINGTON (AP) - Appearing together in solidarity, Republican John McCain and Iraq's president said Saturday that the war-ravaged country is making significant but fragile progress.

The GOP presidential nominee-in-waiting expressed confidence about prospects for the two countries completing a complex agreement that would keep U.S. troops in Iraq after a U.N. mandate expires at year-end. And, Iraqi President Jalal Talabani said an American military presence still was needed.

"I, of, course am encouraged. We both agree that the progress has been significant but the progress is also fragile. And there's a lot of work that needs to be done," McCain said at the end of a private 45-minute meeting with Talabani.

U.S. and Iraqi authorities are trying to meet a July target date for completing a security agreement. Talks bogged down over several key issues, which Iraqi lawmakers said violated the nation's sovereignty. Recently, however, Iraqi authorities said prospects for a deal had brightened after the Americans submitted new, unspecified proposals.

Talabani discussed the issue with President Bush.

McCain emphasized that the two countries will decide the role of U.S. forces together.

McCain also met with Philippines President Gloria Macapagal-Arroyo on Saturday, and is traveling to Kentucky for an evening fundraiser.

(Copyright 2008 by The Associated Press. All Rights Reserved.)