Baghdad and Washington are closing in on a deal that would see the U.S.-led coalition end its presence in Iraq after a decade of fighting ISIS, according to The National, Paralel.Az reports.

An Iraqi delegation spent Monday and Tuesday in Washington for the latest round of talks to wind down the coalition and establish new bilateral security partnerships with each country that still has troops there.

Iraqi politician Jawad Al Bulani, who is on the parliamentary security and defence committee, said Baghdad and Washington “are putting the finishing touches on the withdrawal deal of all foreign troops in the coalition in Iraq”.

“They are in the final stages now to go ahead with the deal,” Mr Al Bulani told The National.

Both sides “have the perception that the mission of these troops is nearing its end", he said.

U.S. Defence Secretary Lloyd Austin held talks with Iraqi Defence Minister Thabet Al Abbasi on Tuesday, Pentagon press secretary Maj Gen Pat Ryder said.

Maj Gen Ryder declined to comment when asked about a timeline for withdrawal, but he emphasised what is at stake if the coalition does leave Iraq.

Sources close to the Iraqi government confirmed to The National that Baghdad and Washington have agreed to start withdrawing some of the U.S. troops operating under the coalition.

About 2,500 US troops are stationed in Iraq as part of the international coalition.