DAMASCUS, Dec. 9 (Reuters) - Iraq and Syria will re-open their respective embassies on Monday after decades of diplomatic deep freeze, Iraqi politician Ahmad Chalabi said on Saturday following talks with Syrian Foreign Minister Walid al-Moualem.

Iraq and neighbouring Syria agreed to restore full diplomatic relations last month during a visit to Iraq from Moualem, the first by a Syrian minister since the 2003 U.S.-led invasion which toppled former Iraqi President Saddam Hussein.

"Mr Moualem told me that the flags will be raised on the embassies on Monday to be followed soon by an exchange of ambassadors," Chalabi told Reuters.

Chalabi, who is in Damascus for a three-day visit said, that Syria was also studying joint patrols with Iraqi forces along the desert border between the two countries.

U.S. and Iraqi officials accuse Syria of supporting Sunni insurgents and have long complained that Syria has done too little to seal its border to foreign Islamist fighters.

Chalabi was asked if Syria has taken any practical steps to implement recently signed protocols between the two countries aimed at helping stabilise Iraq.

"Syria is ready to exchange security data and cooperate on the ground," he said. "Iraq is also ready to facilitate an economic exchange with Syria and resume exports of oil through the pipeline to Partous. But this of course is tied to the security situation on the Iraqi side."

As part of the deal to restore diplomatic relations Syria agreed on the need for US.-led forces to stay in Iraq until they were no longer needed, after which they would be gradually withdrawn.

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