Britain said it will withdraw its remaining forces in Iraq to neighboring Kuwait.
The British Embassy in Baghdad said Tuesday the move is necessary because the Iraqi parliament has failed to pass a deal allowing some British troops to stay beyond the end of July.
The deal would have allowed up to 100 British troops to remain in Iraq to help the Iraqi navy protect oil installations off the southern coast.
The embassy said the Iraqi parliament has not approved the deal due to a procedural delay. Embassy officials said the troops will be moved to Kuwait until the issue is resolved.
However, Iraq's parliament adjourned Monday for a recess.
Earlier this month, a group of Iraqi lawmakers loyal to Shi'ite cleric Moqtada al-Sadr staged a protest against the proposed deal.
The politicians walked out of a parliament session, suspending consideration of the proposal.
Moqtada al-Sadr has been a vocal critic of the foreign military presence in Iraq.
Some information for this report was provided by AFP and AP.