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According to diplomats, relations between the allies have gone into "deep freeze" since the capture of Saddam Hussein last weekend.
President Bush was incensed that Mr Blair stole Washington's thunder by being the first Western leader to confirm that the former dictator had been arrested by US troops.
Downing Street rushed out Mr Blair's announcement before he had spoken to the American leader early last Sunday, when Mr Bush - six hours behind London - was still in bed.
Whitehall insiders confirmed that Mr Blair's decision was partly out of anger over a US veto on his proposed visit to British troops in Iraq during the Christmas holiday.
Presidential advisers in Washington wanted Mr Bush to be the sole leader to make a Christmas visit to troops in Baghdad and urged Downing Street to postpone any visit.
The US refused to co-operate on security arrangements for a Christmas visit by Mr Blair, who is going to spend the festive season with his family in the Egyptian resort of Sharm al-Sheikh.
Mr Blair and Mr Bush have had at least three phone conversations during the past seven days which Whitehall officials described as "increasingly terse".