(fixes typo in lead)
ISTANBUL, Oct 5 (Reuters) - Turkish Foreign Minister Mevlut Cavusoglu said the Bashiqa camp in Iraq, at the centre of a dispute between the two neighbours, had been set up to train local forces in fight against Islamic State and Baghdad knew it had been established.
Iraqi Prime Minister Haider al-Abadi has warned Turkey that it risks triggering a regional war by keeping troops in Iraq. Most of Turkey's troops are at a base in Bashiqa, north of Mosul, where they are helping to train Iraqi Kurdish peshmerga and Sunni fighters.
"Bashiqa camp was set up within the knowledge of Iraqi administration," Cavusoglu told a news conference. "Baghdad officials have visited this camp and have even provided financial support to it in the past," he said.
Reporting by Humeyra Pamuk; Editing by Angus MacSwan