Turkey has begun preparations for a cross-border operation
Military build up
Iraqi Prime Minister Nouri Maliki said he was prepared to conduct "urgent talks" to defuse the crisis and said a diplomatic solution had to be found.
Iraq signed a counter-terrorism pact with Turkey last month, but opposes any military incursion into its territory.
The US has also warned Ankara against ordering any incursions into Iraq.
"We all have an interest in a stable Iraq and a desire to see the Kurdistan Workers Party (PKK) brought to justice," White House National Security Council spokesman Gordon Johndroe said.
"But we urge the Turks to continue their discussions with us and the Iraqis and to show restraint from any potentially destabilising actions."
'Internal affairs'
Soon after the Turkish cabinet agreed to submit a motion to parliament seeking authorisation for military action, an Iraqi government spokesman called on Ankara to be "wise and patient" and not to enter Iraqi territory.
The Iraqi government calls on the Turkish government to pursue a diplomatic solution and not a military solution
Ali al-Dabbagh
Iraqi government spokesman
Profile: PKK rebel group
"The Iraqi government calls on the Turkish government to pursue a diplomatic solution and not a military solution to solve the [problem] of terrorist attacks which our dear neighbour Turkey has witnessed from the PKK," Ali al-Dabbagh said.
Earlier, Mr Maliki said he was prepared to conduct urgent talks with the Turkish government to "discuss and solve all outstanding problems and give guarantees that will govern relations between the two neighbouring nations".
"We are fully confident that our friends in the Turkish government are committed, just as it is our wish, to bolstering and developing our bilateral relations on the basis of mutual respect, non-intervention in the other's internal affairs and not allowing the harmful use of each other's territory," he said in a statement.
Ankara claims the PKK is a terrorist group that enjoys free movement in northern Iraq and blames it for the deaths of at least 15 Turkish soldiers in the past two weeks.
Cross-border raids
Deputy Prime Minister Cemil Cicek said the Turkish government hoped it would not be forced to resort to military action, even if its motion gained approval in parliament.
The PKK wants more autonomy in south-eastern Turkey
"We hope that there will be no reason to use the authorisation, we hope there will be no need for that," he said at a news conference.
Mr Cecik said that if approved, the measures would be valid for a year and would allow multiple cross-border operations.
He also stressed that Turkey would only target the PKK and had no intention of occupying Iraqi territory.
"We have always respected the sovereignty of Iraq, which is a friendly and brotherly country," he added.
The government plans to put the motion to a vote on Wednesday and Prime Minister Recep Tayyip Erdogan's AK Party, which has a majority, is expected to vote in favour.
Turkey.
On Wednesday, Turkey's Grand National Assembly voted 507-19 to authorize sending troops into northern Iraq to pursue Kurdish rebels.  Although the authorization is valid for one year, Turkish officials made clear that it would not necessarily result in military action.  Both the United States and Iraq have recently warned Turkey against such an incursion.  

Turkish Prime Minister Recep Tayyip Erdoğan said that although the motion does not indicate that a military operation is imminent, it is necessary for Turkey to be able to respond to bomb attacks which have been blamed on Kurdistan Workers Party (PKK) rebels in Iraq.  Turkey has been asking for help in dealing with the PKK for months, and the Turkish public has grown frustrated with America's perceived lack of action on the issue. 
Map showing Kurd-inhabited region overlapping national borders.
Both the United States and Iraq have recently warned Turkey against an incursion into Iraq.  "The Iraqi government calls on the Turkish government to pursue a diplomatic solution and not a military solution to solve the problem of terrorist attacks which our dear neighbor Turkey has witnessed from the PKK," Iraq government spokesperson Ali al-Dabbagh said earlier this week.  White House National Security Council spokesman Gordon Johndroe called on Turkey "to continue their discussions with us and the Iraqis and to show restraint from any potentially destabilizing actions."  

Responding to the motion, U.S. President George W. Bush urged Turkey not to carry out an attack, saying "we are making it clear to Turkey it is not in their interest to send more troops in... there is a better way to deal with the issue."

Syrian President Bashar al-Assad defended Turkey's decision and criticized the U.S. position, saying "It is important to note that the powers that have invaded Iraq are those primarily responsible for the terror activities and attacks because they control the country."  "We certainly support and back the decisions by the Turkish government in combat against terror and terror activities," he said.

Murat Karayilan, the leader of the armed wing of the PKK, warned Turkey of the consequences of an attack in an interview with The Times.  "If the Turkish Army attacks Iraqi Kurdistan we will struggle and resist against this until the end," he said.  Karayilan nevertheless said he hoped that the crisis could be resolved peacefully but continues attacks on Turkish soldiers, killing 12 in an ambush yesterday.

U.S.-Turkish relations have been strained recently after a U.S. House of Representatives resolution passed committee, labeling the World War I era killings of up to 1.5 million Armenians by the Ottoman Empire as "genocide". Turkey strongly disputes these claims. Majority Leader Nancy Pelosi says the US House of Representatives will vote on the resolution "soon."

President Bush criticized the resolution at a press conference on Wednesday, saying "One thing Congress should not be doing is sorting out the historical record of the Ottoman Empire."