Saddam Hussein offered to leave his post and go into exile one month before the invasion of Iraq. Saddam was prepared to go peacefully in return for $1billion.

This extraordinary offer was revealed yesterday in a transcript of talks in February 2003 between George Bush and the then Spanish Prime Minister Jose Maria Aznar at the President's Texas ranch.

The White House refused to comment on this.

If this gets verified, it is certain to raise questions whether the costly four-year war could have been averted.