(Updates with more quotes)

WASHINGTON, Jan 4 (Reuters) - U.S. President George W. Bush said on Thursday he would outline his new Iraq policy next week and that he was still involved in consultations as he develops the strategy.

"I will be ready to outline a strategy that will help the Iraqis achieve the objective of a country that can govern, sustain and defend itself sometime next week," he said after meeting with German Chancellor Angela Merkel.

Bush has been considering sending more troops to Iraq as one option, but he did not comment on whether that would be in his final proposal.

"I'm in the process of making up my final decision as to what to recommend, what recommendations to accept," Bush said. "One thing is for certain, I will want to make sure that the mission is clear and specific and can be accomplished."

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