Saudi Foreign Minister Prince Saud al-Faisal told reporters his country's proposal, revealed last week, also stipulates that the United Nations oversee the political process in Iraq including elections for a new Iraqi government.
"These won't be fighting or invading troops but to help serve the Iraqi people so that they return to a normal life. This would also require that coalition forces withdraw from Iraq," Prince Saud said after talks on the plan with Arab League Secretary-General Amr Moussa.
"This proposal responds to demands by many Muslim nations that coalition forces quit Iraq," he said, adding it was part of the kingdom's efforts to help Iraq regain its sovereignty.
An Islamist militant group has already rejected the idea and threatened to retaliate against contributors.
The Saudi proposal, which has met a cool response so far, was for troops from Pakistan, Malaysia, Algeria, Bangladesh and Morocco to help quell unrest in Iraq.
Algerian Foreign Minister Abdelaziz Belkhadem said his country has no intention of sending troops to Iraq, according to official media reports on Sunday.
The proposal may have limited success given that most Arab and Muslim leaders, facing public opposition over pro-US policies, have so far declined to contribute troops to the US-led coalition.
Libyan leader Muammar Gaddafi said the Saudi proposal would be feasible only if coalition forces first withdrew, because the danger was that if Arab and Muslim troops went now they would be seen as shoring up US-led troops and therefore part of the occupying force, state media reported on Sunday.
Iraqi Prime Minister Iyad Allawi appealed to Muslim nations last week to join the proposed force of Islamic troops.
The proposal was cautiously supported by US Secretary of State Colin Powell who suggested the force could protect UN operations. The United Nations pulled out of Iraq after a bombing destroyed its Baghdad headquarters and killed 22 people last August.