Iraqi Prime Minister Nouri al-Maliki and the U.S. ambassador to Iraq, Zalmay Khalilzad say they agree that a timeline for progress is needed in the country.
The two officials issued a joint statement after meeting on Friday in Baghdad.
The statement says that "the Iraqi government has made clear the issues that must be resolved," to address the challenges facing Iraq. It also acknowledges the need for a timeline.
The statement appears to be aimed at ending a controversy over whether the two countries had agreed on a timetable to improve security and Iraq's economy.
Earlier this week, Mr. Maliki said the United States had no right to impose "timetables" on his government.
In the latest violence in Iraq, the US military said fierce clashes in the city of Baquba
that broke out Thursday have resulted in the deaths 24 Iraqi police officers, one civilian, and 18 insurgents.
The US military said Friday another US soldier has died as a result of enemy action. The month of October has been the deadliest for the US military in a year, with 97 deaths.
In the northern city of Mosul, authorities have imposed a vehicle ban after insurgents distributed leaflets threatening violence in the mixed Sunni-Kurdish city.
Meanwhile, US troops backed by air support have moved into the militia stronghold of Sadr City in eastern Baghdad in search of a missing American soldier. The military says the soldier is believed to have left the fortified Green Zone to visit relatives on Monday, and that armed gunmen kidnapped him from that home.