(Bloomberg) -- Fighters from the Kurdistan Workers' Party, or PKK, may announce a unilateral cease-fire in their conflict with Turkey, Iraqi President Jalal Talabani said.

The PKK, whose members have sheltered in northern Iraq, may make the announcement "soon," Talabani said today in remarks made on Turkish television and carried on the Web site of his party, the Patriotic Union of Kurdistan.

Turkey's cabinet was meeting today to consider a possible military strike on PKK bases in Iraq's Kurdish-controlled north after battles with the group on the Turkish side of the border killed 12 soldiers yesterday. The U.S. has warned Turkey to stay out of northern Iraq.

Talabani said that if the PKK continues to use violence to pursue autonomy it will be considered a terrorist organization by Iraq. The group may be viewed as a political entity by Iraq if it uses peaceful means to achieve its goals, he said.

The group is designated a terrorist organization by the U.S. and the European Union.

Almost 40,000 people have died in clashes between the Turkish army and PKK over the past two decades.

By Camilla Hall