The resolution, which was approved by the Iraqi parliament last week, allows the government to negotiate bilateral agreements with other countries that will give foreign troops a legal basis to stay beyond December 31.

"The government is obliged to take necessary steps to implement this resolution," said a statement from the council comprising President Jalal Talabani and vice-presidents Adel Abdelhadi and Tareq Al-Hashimi.

Baghdad will now have to sign individual agreements with the remaining coalition forces -- Britain, Australia, Estonia, Romania and NATO -- if they are to remain in Iraq into the new year.

El Salvador announced earlier this month that it would withdraw its 200 soldiers at the end of 2008.

The United States, which supplies 95 percent of foreign troops in Iraq, has already signed a Status of Forces Agreement with Baghdad, under which its combat forces can remain in the country until the end of 2011.

Britain, the next largest member of the US-led coalition has about 4,100 troops based mainly in southern Iraq, while the other members have only a few soldiers each stationed in Iraq.

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