[Updated at 1:13 p.m. ET] U.S. President Barack Obama, announcing Friday that "the rest of our troops will come home by the end of the year," said: "After nearly nine years, America's war in Iraq will be over."

The new partnership with Iraq will be "strong and enduring" after U.S. troops leave the country, Obama said in the White House briefing room. The United States will continue its interest in a strong, stable Iraq after U.S. troops leave, the president said.

"Today I can say that our troops in Iraq will definitely be home for the holidays," Obama said.

About 39,000 U.S. troops are in Iraq, and the U.S. had wanted to keep from 3,000 to 5,000 troops in Iraq past 2011 to aid in training and security. But the current Status of Forces Agreement with Iraq dictates the U.S. troops leave by year's end, and the United States and Iraq had been unable to come to an agreement on key issues regarding legal immunity for U.S. troops who would remain in Iraq, effectively ending discussion of maintaining a significant American force presence beyond 2011.

Of the 39,000 troops in Iraq, only about 150, a negligible force, will remain to assist in arms sales.

The negotiations were strained following WikiLeaks' release of a diplomatic cable that alleged Iraqi civilians, including children, were killed in a 2006 raid by American troops rather than in an airstrike as initially reported by the U.S. military.

U.S. troops have already started the drawdown - a brigade from Fort Bliss, Texas, that was originally scheduled to be among the very last to leave Iraq was being pulled out of the country months ahead of its planned departure, military officials told CNN last week.

[Updated at 12:47 p.m. ET] The scheduled departure of virtually all U.S. troops from Iraq by the end of the year will allow the United States to "say definitively that the Iraq war is over," a White House official said Friday.

[Initial post] Virtually all U.S. troops will be out of Iraq by the end of the year as the current Status of Forces Agreement with Iraq dictates, a U.S. official told CNN Friday.

A small number of U.S. troops will be attached to the U.S. Embassy in Baghdad.

This month, the United States and Iraq had been unable to come to an agreement on key issues regarding legal immunity for U.S. troops who would remain in Iraq after the end of the year, effectively ending discussion of maintaining a significant American force presence beyond 2011.

About 39,000 U.S. troops are in Iraq, and the U.S. wanted to keep from 3,000 to 5,000 troops in Iraq past 2011.

U.S. President Barack Obama is expected to make a statement about Iraq around 12:45 p.m. Friday, according to a White House official.