BAGHDAD, Dec 29 (Reuters) - Saddam Hussein could be hanged within hours, a senior Iraqi source told Reuters on Friday after Saddam's lawyer said U.S. forces had handed over the former president to Iraqi authorities for execution.

"Things have changed in the past three hours. There were some issues ... and now that is resolved so it seems it's possible he may be hanged tonight," the source, who is in a senior position of authority, said after a day of confusion.

However, the start of the Muslim festival of Eid al-Adha on Saturday raised the possibility of a delay until after the week-long holiday is over, he added: "It's not certain," he said.

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