The man, a former air force general in his 50s, had been living outside Stockholm with his family for two years.
The security police, Säpo, believe the man is a threat to security and has been involved in war crimes in Iraq, although this was denied by his legal representative Kati Lo Forte, said Expressen.
Immigration ministry spokeswoman Barbro Holmberg told AFP she could make no comment on the report.
Lo Forte was quoted as saying that the unidentified man “feared persecution” if he returned to Iraq because of his “political convictions and membership of a certain social group”.
Swedish police told AFP in November that about 10 former senior officials under the Saddam regime were in Sweden where they had demanded asylum.
The ex-officials were also being investigated for alleged crimes against humanity, police said.