BBC: Immigration has become the central battleground in the Danish parliamentary election, which takes place on Tuesday.
Denmark's relations with the Muslim world reached crisis point in 2005 over a Danish newspaper's publication of Prophet Muhammad cartoons.
The leader of the opposition Social Democrats, Helle Thorning-Schmidt, proposes to relax restrictions on asylum seekers.
The centre-right Prime Minister, Anders Fogh Rasmussen, warns that such a move could turn Denmark into "a magnet for refugees".
Strict immigration policies have been at the heart of his government's programme since 2001.
Mrs Thorning-Schmidt, daughter-in-law of former British Labour Party leader Neil Kinnock, wants to give a group of some 500 Iraqi failed asylum seekers permission to live and work outside their refugee camps until Iraq becomes safe enough for them to return. She says Denmark has a special responsibility to help the Iraqis because of Denmark's role in the Iraq conflict.
Although most Danes want to ease restrictions on asylum seekers, Mrs Thorning-Schmidt still looks unlikely to win.
Her party, like Mr Fogh Rasmussen's, would need the support of the centre-right New Alliance Party to form a government - but it is thought to be leaning towards the incumbent prime minister. Danes in poll tussle over migrants (more) By Thomas Buch-Andersen
Mark Alexander