Civil defense rescue teams managed to put out the fire, which in broke out in a four-story hotel in the city, Al-Hurra website reported.
They managed to rescue 78 guests and staff but a child who had been rushed to hospital after inhaling smoke died in hospital.
An investigation has been launched into the cause of the fire.
The incident comes less than a week after a fire killed tens of people in the southern city of Nasiriya.
Last Monday, a fast-spreading blaze tore through the new isolation ward at the Imam Hussein (AS) Teaching Hospital in Nasiriya. The fire continued until early Tuesday, marking the second such tragedy in the Arab country in less than three months.
At least 124 people have been confirmed dead, according to the Iraqi Civil Defense Center. Iraqi officials also said that more than 100 people were injured in the blaze.