Danish troops will be replaced by a small aerial surveillance unit

The troops, numbering about 460, will be replaced by a unit of about 50 soldiers manning four observational helicopters, he said.

It comes as Tony Blair announced a timetable for reducing British troop numbers in Iraq from 7,100 to 5,500.

Most Danish troops are based in the southern city of Basra, where they operate under British command.

The mandate for Danish troops to serve in Iraq is due to expire in June.

Waning public support

Mr Rasmussen said the decision to pull out was taken after consultation with the Iraqi government and the British.

COALITION FORCES US -132,000 UK - 7,100 South Korea - 3,200 Poland - 900 Georgia - 800-850 Australia - 900 Romania - 600-865 Denmark - 460 El Salvador - 380 Bulgaria - 150 Sources: Brookings Institution; Globalsecurity.org; media reports

Five Danish soldiers have been killed in Iraq since the conflict began in 2003.

Denmark was one of the original countries involved in the coalition.

There was general public support for the initial invasion, reports the BBC's Julian Isherwood in Copenhagen, but backing for the war is now at its lowest level.

A recent poll showed 64% of Danes thought it completely or predominantly wrong for Denmark to continue to have troops in Iraq.

Mr Rasmussen said the withdrawal from Iraq would enable Denmark to increase its troop deployment to Afghanistan.

He said no final decision had been taken, but the country's troop deployment could rise from 400 to 600.

"We are favourable to sending more troops to Afghanistan... because it is essential that Nato wins its battle against the Taleban," he said.

Most Danish troops in Afghanistan are under UK command in southern Helmand province.