Ten people were killed and 30 injured in twin bombings claimed by the Islamic State extremist militia outside a shopping mall in Baghdad, local police and medical sources said on Saturday.

Initial reports said that the overnight attack in central Baghdad left 40 people dead and 60 injured.

The attack started with a suicide bomber who blew himself up with an explosive vest, police said.

Shortly after, a car bomb went off at a gate to the mall. A large number of cars, parked in the mall garage, were set ablaze as a result.

The assault occurred as people were shopping for Eid al-Adha, a major Muslim holiday that starts on Monday.

The Islamic State mouthpiece, the Amaq Agency, reported that the double attack included two consecutive suicide operations using an explosive belt and a car bomb.

Baghdad authorities have tightened security in the city as a result of the attack.

"Security forces have been deployed in districts and streets located near shopping places," an unnamed official told independent Iraqi website Alsumaria News.

Baghdad sees frequent deadly bombing attacks, most of which are thought to be carried out by Islamic State.

They often target busy locations such as markets and restaurants in Shiite areas as well as Shiite religious gatherings.

The radical Sunni group regards Shiites as heretics.

In recent months, Islamic State has suffered military setbacks and lost ground in several parts of Iraq due to US-backed fighting targeting the al-Qaeda splinter militia.

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