BAGHDAD - A suspected Hezbollah terrorist accused of masterminding the killing of Americans in Iraq has been cleared of all charges and will be freed, his lawyer said on Monday, in an announcement that is likely to anger Washington.

Ali Mussa Daqduq was accused of training Iraqi militants and orchestrating a 2007 kidnapping attack that killed five US troops.

"The Iraqi judiciary decided to dismiss all the charges against him and release him without any conditions because there was a lack of evidence," his lawyer Abdulalmehdi al-Mutiri said by telephone.

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