Foreign Secretary Margaret Beckett said on Wednesday that British forces could transfer control of the southern Iraqi city of Basra to the Iraq government by early next year.
In one of the clearest indications by a senior politician yet of timing for troop withdrawal, Beckett told the House of Commons there was "confidence" the move could take place. Britain, which joined the US-led invasion of Iraq in March 2003 despite significant opposition from lawmakers and the public, has just over 7,000 troops stationed around Basra.
The British-run province of Maysan, south-east Iraq, which contains the city of Amarah, would be handed over in January, Beckett added in a foreign affairs debate.
"In our own area of responsibility, we expect Maysan to follow in January and the progresses of the current operation in Basra gives us confidence that we may be able to achieve transition in that province too at some point next spring," she said.
She added that the process of transferring security to Iraqi forces was "well under way", adding that Najaf, in the south, was set to be transferred next month.
Basra is a major centre for coalition troops in Iraq and was visited at the weekend by Gordon Brown, Britain's finance minister who is expected to succeed Tony Blair as prime minister next year.