Baghdad: An Iranian-backed bloc in Iraq's Parliament has proposed the governor of oil-rich southern Basra province as the country's next prime minister, two officials said.

The Fatah bloc, which includes leaders associated with the paramilitary Popular Mobilisation Units, supported by Iran, proposed Governor Asaad al-Eidani for the job.

Anti-government protesters gather in Tahrir Square during a sit-in in Baghdad, Iraq. Credit:AP

The nomination was promptly rejected by Iraqi protesters who poured into the streets of several southern Iraqi provinces, including Basra and the holy Shiite cities of Karbala and Najaf, saying they wanted an independent figure for the post.

In Karbala, shooting could be heard in the city but the cause was not immediately clear, local officials said.