The Western troop presence in Iraq is to be scaled down under a plan to defuse regional tensions over America's killing of Iranian general Qassim Soleimani.

Rather than bowing to Iranian demands for a pull-out of all coalition forces, diplomats are working towards a compromise deal whereby the foreign troop presence will simply be reduced.

They hope that will satisfy demands from pro-Iranian factions in Iraq's parliament, which voted two weeks ago for foreign troops to leave after Mr Soleimani's death in a US drone strike on January 3.

The plan follows concerns among Western military chiefs that an immediate pull-out would hamper the ongoing mop-up operations against Islamic State remnants in Iraq.

Iraq's Kurdish and Sunni Muslim politicians also voiced fears that a complete withdrawal by Washington would give Tehran even greater sway over the Shia Muslim bloc that dominates the parliament.