SANAA, Jan 19 (Reuters) - Yemen denied on Friday that it was harbouring one of Saddam Hussein's top aides as alleged by Iraqi President Jalal Talabani.

Talabani told Reuters in an interview on Thursday that Izzat al-Douri, wanted by Iraq and suspected of directing insurgency there, was in the Red Sea state.

"We deny...that Izzat al-Douri is in Yemen," a senior official told Reuters.

"Such information is baseless and unfounded. Yemen is very transparent when it comes to political asylum."

Several Iraqi officials have said Douri is in Syria, but Talabani said his government had been following his movements and established that he was in Yemen.

Douri was Saddam's deputy in the Revolutionary Command Council, which functioned as both executive and legislature. He is believed to have links with the Sunni insurgency in Iraq.

Yemen has been a refuge for many political rebels including some leaders of Somalia's ousted Islamist movement who fled their country on Jan. 6.

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