British troops are set to be out of Iraq by the summer, it has emerged.
Defence sources have indicated that the withdrawal is likely to begin in March and could be complete by June, according to reports.
The news comes after intense negotiations with Iraqi authorities over the role of UK forces.
The majority of the 4,000 British troops are now confined to Basra air base and the Government has previously signalled they would start pulling out in January.
A Ministry of Defence spokeswoman said: "Significant progress has been made in Basra, a city which has now been transformed thanks to Iraqi, Coalition and British efforts.
"As such, we are now expecting to see a fundamental change of mission in early 2009."
The formal timetable of the withdrawal is expected to be confirmed by the Prime Minister early next year.
It follows months of assessments by British and American commanders.
According to The Guardian, almost all of the troops stationed in Basra will have been taken out by June.
"It will be very gradual, then a fairly steep withdrawal," one defence official told the paper.
