Iraq's team united a divided country

President Jalal Talabani said the team's victory was a clear statement of national unity and PM Nouri Maliki gave each player a $10,000 (�4,895) bonus.

Most Iraqis had to watch the ceremony, held in the heavily-fortified Green Zone, on TV because of security fears.

Fifty fans were killed in two bombings following the team's semi-final win.

Correspondents say the 1-0 win over Saudi Arabia in Sunday's final united Sunnis, Shia and Kurds across Iraq.

'Statement of unity'

At the al-Rashid hotel inside the Green Zone, 15 members of the Iraqi football squad, known as the Lions of Mesopotamia, received a hero's welcome.

The players wore flowers around their necks as fans and officials danced around to traditional music, waving giant Iraqi flags.

Fawzi Akram, a member of the Iraqi parliament's sport committee, invited the players to a special legislative session in their honour "to praise them for what they have given for the sake of Iraq - its unity, people, land and sovereignty".

This victory will help to patch up and strengthen alliances between groups on the basis of national reconciliation President Jalal Talabani In pictures: Football fever

Mr Talabani expressed hope that the victory would encourage the factions in Iraq's government to work together.

Last week, the Sunni Iraqi Accordance Front, which had six cabinet ministers, pulled out of the government saying the Shia-led administration had failed to meet a list of demands, including one urging tough action against Shia militias.

"This victory will help to patch up and strengthen alliances between groups on the basis of national reconciliation," he said.

On Friday, Mr Talabani said the team's victory was a "a clear statement of Iraqi unity".

"They have shown unity in the celebrations honouring you, and also in the mammoth demonstrations and meetings organised by the Iraqi people despite the black terrorism, which has indiscriminately targeted innocent people and those who love sports and the homeland," he said.

In addition to their $10,000 bonus, Mr Maliki awarded the players diplomatic passports.

The proceedings were tinged with sadness, however, as the team dedicated their victory to the 50 people killed in two separate bomb attacks after the victory in the semi-final.

Three of the players, including team captain Younis Mahmoud, a Sunni who scored the winning goal in the final, were absent. He reportedly stayed away because he feared for his life.