An intelligence assessment done by the National Intelligence Estimate (NIE) has warned the Bush administration that the ground situation in Iraq was deteriorating each day and the certain aspects of the conflict could be seen as an act of "civil war".

However the report added that though it has used the term "civil war", it does not describe the overall situation in the country. The government has said that the report vindicates its demand for extra troops to be sent to Iraq while the Democrats reiterated that the report shows that the government strategy is a complete failure.

The report also warned about the polarization of the two religious groups with violence increasing between the Sunnis and Shias, boosted by a weak government and a weaker security force. It added that unless measures are not taken quickly to control the violence, the condition would further deteriorate.

"Unless efforts to reverse these conditions show measurable progress during the term of this estimate in the coming 12 to 18 months, we assess that the overall security situation will continue to deteriorate. Coalition capabilities including force levels, resources and operations remain an essential stabilizing element in Iraq", the report said.

Meanwhile the report could land a blow to President Bush's plan to send around 21,500 additional troops to Iraq and is awaiting the Congress' approval.

Reacting to the report, Senator John Rockefeller IV, the West Virginia Democrat and chairman of the Senate Intelligence Committee, said that the only hope for Iraq would be the political leaders sitting down and coming to an agreement with the insurgents.

"The estimate reaffirms my belief that the best hope for progress toward stabilizing Iraq lies only with the Iraqi people and their political leaders. The steps identified by the intelligence community as having the best chance of reversing the chaos and bloodshed in Iraq are all political developments, not military", he added.