"The American troops surrounded the village of Mazra in the vicinity of the town of Baiji and detained five children aged up to 10. Then they demanded on the loudspeaker that the local people give away several more children that have been shown on the TV rejoicing at the death of American soldiers killed in a mine explosion on the outskirts of Baiji", said a source in the Iraqi police.
The US servicemen also threatened to mop up the village and detain the children and adults suspected of insurgent activities.
The US command says it has no information of the incident.
As earlier reported, last week four US soldiers had been killed and another six wounded in the village of Mazra on the outskirts of Baiji, 200 km north of Baghdad.
Two US military "Hammer" cars and an armored personnel carrier had been bombed and then raked with fire from hand grenade launchers and guns.