The Iraqi troops arrested the Daesh militant when he was trying to explode himself in a gathering of pilgrims in Kadhimiya, the Arabic-language al-Ahed news website reported.
In another development in the Arab country, a number of Daesh leaders were killed in air strikes by the Iraqi army in the southwestern districts of the Kirkuk Governorate.
Commander of Nineveh Operations Major General Najim al-Jabouri also said that a huge boat, carrying two tons of explosives was also targeted and destroyed in the air strikes near al-Hojaj village.
Iraq has been facing the growing threat of terrorism, mainly posed by the Daesh (ISIL) terrorist group.
Daesh militants made swift advances in much of northern and western Iraq over the summer of 2014, after capturing large swaths of northern Syria.
However, a combination of concentrated attacks by the Iraqi military and the volunteer forces, who rushed to take arms after top Iraqi cleric Ayatollah Ali al-Sistani issued a fatwa calling for fight against the militants, have blunted the edge of Daesh offensive.
Iraqi forces are advancing towards Mosul, the largest city still under the control of Daesh. They have mostly surrounded Shirqat, 250 km (160 miles) north of Baghdad, and recently retook a major air base from the militants to use in the main push on Mosul, 60 km further north.