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DUBAI, April 19 (Reuters) - The self-styled Islamic State in Iraq, an al Qaeda-linked militant group, formed a cabinet on Thursday, naming al Qaeda's local chief as war minister, according to a message posted on the Internet.

A spokesman for the Islamic State in Iraq said in a video the group's consultative body had named a 10-man cabinet with a prime minister and portfolios including war, oil, Islamic affairs, information and health.

"Today ... after God defeated the crusaders and apostates at the hands of the mujahideen, it became a requirement for the consultative council of the Islamic state in Iraq to announce the first Muslim government," said the spokesman, who wore a traditional Arab robe and whose face was electronically blurred.

The group named Abu Hamza al-Muhajir, the leader of al Qaeda's wing in Iraq, as war minister and Abu Abdulrahman al-Falahi as prime minister. For security reasons, names used by insurgent figures in Iraq are usually aliases.

Abu Omar al-Baghdadi remained leader of the Islamic State in Iraq, which was set up in October by al Qaeda and several other Sunni groups, the spokesman said.

The authenticity of the video could not be verified but it was posted on Web sites often used by al Qaeda and other insurgent groups in Iraq.

The group has claimed responsibility for mass kidnappings and major attacks, including the downing of U.S. helicopters.

But it has drawn limited support from other Sunni groups and there are signs of a growing rift between home-grown Iraqi insurgents and al Qaeda.

Earlier on Thursday, the group said it had killed 20 kidnapped Iraqi troops and policemen, after the government failed to meet a deadline to free female Sunni prisoners. It issued a video of the apparent shootings.

Suspected al Qaeda militants detonated a string of bombs in mostly Shi'ite areas of Baghdad on Wednesday in the worst day of violence since a U.S.-backed security plan went into effect in the capital more than two months ago.

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