The United States hopes to encourage other nations to contribute troops and aid to Iraq with the resolution, but has run into concerns from Annan and other members of the U.N. Security Council.
Annan, along with France, Germany and Russia, want a quick transfer of power to a provisional Iraqi government.
But the United States and Britain say the country must first have a constitution in place and hold elections before they relinquish sovereignty.
Powell said Friday that American officials "have some ideas" for accommodating concerns raised by Security Council members over the latest U.S. draft.
"We are trying to listen, take into account what we are hearing, and bring the community back together around the resolution," Powell said.