Gordon Brown and Iraqi prime minister Nouri Maliki say UK forces will have "completed their tasks" and leave the country by the end of July next year.
Gordon Brown and Iraqi prime minister Nouri Maliki say UK forces will have "completed their tasks" and leave the country by the end of July next year.
The two leaders' joint statement came as they held talks in Baghdad before Mr Brown headed to Basra.
The two leaders' joint statement came as they held talks in Baghdad before Mr Brown headed to Basra.
The UK PM praised his forces for making Iraq a "better place".
The UK PM praised his forces for making Iraq a "better place".
There are currently about 4,100 UK troops in Basra, southern Iraq. Between 200 to 300 military advisers are likely to remain after combat troops leave.
There are currently about 4,100 UK troops in Basra, southern Iraq. Between 200 to 300 military advisers are likely to remain after combat troops leave.
BBC diplomatic correspondent Paul Adams said the setting of a date for the end of British operations in Iraq had ended months of speculation.
BBC diplomatic correspondent Paul Adams said the setting of a date for the end of British operations in Iraq had ended months of speculation.
'New era'
'New era'
The withdrawal announcement comes after at least 18 people were killed and dozens wounded in a twin bomb attack in Baghdad on Wednesday.
The withdrawal announcement comes after at least 18 people were killed and dozens wounded in a twin bomb attack in Baghdad on Wednesday.
At a press conference, Mr Brown said: "We have agreed today that the mission will end no later than 31 May next year.
At a press conference, Mr Brown said: "We have agreed today that the mission will end no later than 31 May next year.
I am proud of the contribution British forces have made. They are the pride of Britain and the best in the world Gordon Brown
I am proud of the contribution British forces have made. They are the pride of Britain and the best in the world Gordon Brown
"Our troops will be coming home within the next two months [after that]."
"Our troops will be coming home within the next two months [after that]."
Mr Maliki confirmed that the agreement included a provision for the Iraqi government to request an extension of the British military presence.
Mr Maliki confirmed that the agreement included a provision for the Iraqi government to request an extension of the British military presence.
However, both leaders indicated it was not expected to be used.
However, both leaders indicated it was not expected to be used.
Mr Brown said: "We have made a huge contribution and of course given people an economic stake in the future of Iraq. We leave Iraq a better place."
Mr Brown said: "We have made a huge contribution and of course given people an economic stake in the future of Iraq. We leave Iraq a better place."
He added: "I am proud of the contribution British forces have made. They are the pride of Britain and the best in the world."
He added: "I am proud of the contribution British forces have made. They are the pride of Britain and the best in the world."
In their joint statement, the leaders said the role played by the UK combat forces was "drawing to a close".
In their joint statement, the leaders said the role played by the UK combat forces was "drawing to a close".
Inquiry call
Inquiry call
The partnership between the two countries would "continue to take on new dimensions and will be strengthened through cooperation in all areas", they added.
The partnership between the two countries would "continue to take on new dimensions and will be strengthened through cooperation in all areas", they added.
The withdrawal of UK troops is expected to start in the spring.
The withdrawal of UK troops is expected to start in the spring.
Shadow defence secretary Liam Fox said it was a "good thing" as it showed "renewed confidence" in the Iraqi government's ability to maintain security on its own.
Shadow defence secretary Liam Fox said it was a "good thing" as it showed "renewed confidence" in the Iraqi government's ability to maintain security on its own.
But he reiterated the calls his party - the UK's official opposition - has made for a public inquiry into the causes and conduct of the Iraq war.
But he reiterated the calls his party - the UK's official opposition - has made for a public inquiry into the causes and conduct of the Iraq war.
The death and injury of hundreds of British troops and hundreds of thousands of Iraqi civilians in this futile war cannot simply be swept under the carpet Nick CleggLib Dem leader
The death and injury of hundreds of British troops and hundreds of thousands of Iraqi civilians in this futile war cannot simply be swept under the carpet Nick CleggLib Dem leader
"Now we have a timetable for troops coming out we can have a timetable for the inquiry that so many people want," he said.
"Now we have a timetable for troops coming out we can have a timetable for the inquiry that so many people want," he said.
"There is no reason for the government to refuse that."
"There is no reason for the government to refuse that."
Challenged about the inquiry at prime minister's questions Harriet Harman - standing in for Mr Brown - said: "We have made clear that while our troops are still in Iraq, which they are, doing their duties, that we will not have a full inquiry on how they went in until after they return.
Challenged about the inquiry at prime minister's questions Harriet Harman - standing in for Mr Brown - said: "We have made clear that while our troops are still in Iraq, which they are, doing their duties, that we will not have a full inquiry on how they went in until after they return.
"We have to respect the fact that our fighting forces are still in Iraq. There is no delay."
"We have to respect the fact that our fighting forces are still in Iraq. There is no delay."
Nick Clegg, the leader of the UK's third largest party the Liberal Democrats, said: "After five long years in which the enormity of our forces' courage and sacrifice has been matched only by the enormity of the government's mistake, it is a huge relief that the end is at last in sight.
Nick Clegg, the leader of the UK's third largest party the Liberal Democrats, said: "After five long years in which the enormity of our forces' courage and sacrifice has been matched only by the enormity of the government's mistake, it is a huge relief that the end is at last in sight.
"There must be a fully independent public inquiry into how this was allowed to happen. The time when Brown has been able to hide behind our troops' ongoing presence in the country is coming to an end.
"There must be a fully independent public inquiry into how this was allowed to happen. The time when Brown has been able to hide behind our troops' ongoing presence in the country is coming to an end.
"The death and injury of hundreds of British troops and hundreds of thousands of Iraqi civilians in this futile war cannot simply be swept under the carpet."
"The death and injury of hundreds of British troops and hundreds of thousands of Iraqi civilians in this futile war cannot simply be swept under the carpet."
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