Turkey has massed troops along its border with Iraq to back its threats to carry out military strikes on Kurdistan Workers' Party (PKK) separatist rebel bases in northern Iraq.

In an accompanying war of words, Erdogan and other Turkish leaders have been particularly outspoken in their criticism of Massud Barzani, head of the Kurdish regional government in northern Iraq.

"What they (Barzani's followers) are doing there is quite simply harbouring a terrorist organisation," Erdogan said late Tuesday during a reception for Turkey's national day.

Erdogan said his cabinet would discuss possible economic sanctions against Iraqi Kurdistan at a meeting on Wednesday. Turkey's National Security Council, made up of military and political leaders, has recommended sanctions.

The prime minister made it clear that Ankara would only negotiate through Baghdad, rather than talk directly with the Iraqi Kurd administration.

"Turkey's contact is not Barzani. Our contact is the government in Baghdad," he was quoted as saying by the Anatolia news agency.

"If terrorist organisations encroach on Turkish territory, we will use all means available to us under international law," he added.

The Turkish army pounded Kurdish rebels near the Iraqi border Tuesday, with Cobra helicopters firing missiles at rebel positions on the Cudi mountains in Sirnak province. Three soldiers were killed in the clashes, officials said.

Ankara has warned the United States that its failure to help end the PKK safe haven in northern Iraq would harm the relationship between the two long-standing NATO allies.

Scheduled to meet US President George W. Bush at the White House on November 5, Erdogan has called for "concrete, urgent steps" against the PKK, which Washington, like most of the international community, considers a terrorist group.

"The problem of the PKK terrorist organisation is a sincerity test for everybody," Erdogan said. "I will tell him (Bush) that this test carries great importance for the region and in determining the fate of our future relations.

"Our talks (with Bush) will make them better understand that Turkey's patience has run out and that we are determined to unhesitatingly take all the steps to finish off terrorism," he said.

In a separate diplomatic initiative, UN Secretary General Ban Ki-moon announced he would travel to Turkey this weekend to attend a ministerial meeting of countries neighboring Iraq.

US Secretary of State Condoleezza Rice is to attend the Istanbul meeting which is likely to be overshadowed by the Turkish threats of military action.

The Turkish army has reportedly massed about 100,000 troops along the Iraqi border after parliament gave approval for a military incursion to root out the militants.

Tensions at the frontier increased after October 21 when PKK rebels, who Turkey says infiltrated from northern Iraq, ambushed a military unit and killed 12 soldiers. Eight troops were captured.

The army has confirmed killing 65 rebels since then.

The crisis will enter a crucial diplomatic stage Friday when Rice meets Turkish leaders in Ankara before Erdogan's Washington visit.

She will hold talks with Erdogan, Foreign Minister Ali Babacan and President Abdullah Gul, a US embassy official said.

Washington, strongly opposed to Turkish military action in northern Iraq, is stuck in an awkward position between two key allies -- NATO member Turkey and the Iraqi Kurds.