UPDATE 5-Soccer-FIFA lifts Iraqi Football Association suspension

(Adds Iraqi coach's reaction, paragraphs 12-14)

By Ossian Shine

SYDNEY, May 29 (Reuters) - Iraq's World Cup qualifier against Australia will go ahead as planned this weekend after FIFA agreed to temporarily lift their suspension.

The match had been in doubt after FIFA announced on Monday it was suspending the reigning Asian champions in response to their government's decision to dissolve their National Olympic Committee.

However, FIFA agreed to revoke the ban after the Iraqi government provided written assurances that it had not dissolved the Iraqi Football Association (IFA).

FIFA released a statement on Thursday confirming it had lifted the ban so Sunday's World Cup qualifier would proceed but warned Baghdad that it was only provisional and had conditions attached.

FIFA said it still had concerns over the Iraqi government's attempts to control its national federations and has called for a delegation from the Asian Football Confederation (AFC) and the IFA to join it in Zurich to discuss the issues.

"This letter is a positive step, however it does not fully answer all of FIFA's concerns about the governmental attempts to control the Iraqi federations and the Iraqi National Olympic Committee," the FIFA statement said.

AFC President Mohamed Bin Hammam, who had led the push to suspend Iraq as part of his strong stance against political interference in sport, welcomed the Iraqi government's letter but also said it needed to reverse its decision to dissolve the country's national Olympic committee.