Al-Qaida on Thursday confirmed the killing of Abu Musab al-Zarqawi, al-Qaida's leader in Iraq, in a statement posted on an Islamic website.

"We announce the joyous news of the martyrdom of our warrior Sheikh Abu Musab al-Zarqawi in Iraq," said the statement signed by al-Zarqawi's deputy Abu Abdul Rahman al-Iraqi.

"This is an honor to our nation...Our leader's death will only boost our persistence in continuing the holy war," the statement added.

The authenticity of the statement can not be immediately verified.

Al-Zarqawi, a Jordanian-born and most wanted terrorist in Iraq, is believed to have personally beheaded at least two American hostages.

Zarqawi was killed along with his seven followers during a U.S. air strike on Wednesday near Baquba, 60 km north of Baghdad.

The U.S. military has put a bounty of 25 million dollars on al- Zarqawi, the same as on fugitive al-Qaida leader Osama bin Laden.

Source: Xinhua