Citing an unnamed close friend and ally of Mr Baker, the BBC reported that the top US politician added that "there simply weren't any easy solutions".
Mr Baker is leading a review of the situation in Iraq by a bipartisan US committee of experts, and is expected to recommend a change in US strategy for rebuilding Iraq.
He was secretary of state to US President George W Bush's father, president George Bush.
Citing unnamed members of Baker's committee, The Los Angeles Times has reported that two options are under consideration -- withdrawing American troops in phases, and bringing neighbouring Iran and Syria into a joint effort to stop the fighting.
The BBC also reported that a third possibility was under consideration -- to concentrate on getting stability in Iraq, and stop aiming to establish a democracy there.
Blair stands firm
However British Prime Minister Tony Blair has vowed to keep British troops in Iraq until their "job is done", rejecting claims presence is fuelling Muslim extremism.
Mr Blair defended his Iraq policies when asked whether he agreed with army chief General Sir Richard Dannatt, who called last week for their withdrawal soon because they exacerbated Britain's security problems.
Mr Blair urged reporters at his monthly press conference to put Dannatt's interview in Friday's Daily Mail newspaper in the context of remarks he gave later the same day on radio and television.
General Dannatt told BBC radio after the interview that the army's presence helped in some areas and hurt in others before finally insisting in a written statement Friday that problems with their presence were "not a reason for us to leave."
Bloodbath continues
Iraq's beleaguered government meanwhile continues its struggle to maintain authority amid a four-day sectarian bloodbath.
Iraqi and US troops are attempting to restore order in the town of Balad and its surrounding killing fields, as rival Sunni and Shiite death squads continue the random slaughter of civilians.
Malik Laftah, the head of Balad city council, said many corpses are still lying in the streets and that 17 mortar shells had hit the city limits over the past 24 hours, indicating the final toll could be higher.
Baghdad was also hit by a suicide bomb and a mortar attack, killing five and injuring more than a dozen others.
Police also found 30 other corpses in and around the city.