Erdogan will confer with President Jalal Talabani and his Iraqi counterpart Nuri al-Maliki on economic cooperation and regional issues, they added.

The fight against the Kurdistan Workers' Party (PKK), which has bases in autonomous Kurdish region in northern Iraq and infiltrate the border for attacks on Turkish targets will also be discussed, the sources said.

Erdogan will also visit Arbil, the capital of autonomous Kurdistan to become the first Turkish prime minister to visit the region, which was accused by Ankara of tolerating and even aiding the PKK.

But Turkey has now dropped such hostile rhetoric, shifting to a policy of seeking cooperation with the local authorities to curb the Kurdish rebels.

Turkish Foreign Minister Ahmet Davutoglu will accompany Erdogan alongside a delegation of businessmen.

The PKK, viewed as a terrorist group by Ankara and much of the international community, took up arms against Ankara in 1984 for self-rule in Turkey's Kurdish-populated east and southeast, sparking a conflict that has claimed some 45,000 lives.