"When the UN mandate in Iraq expires, the Polish stabilisation mission must also end," Szmajdzinski told reporters after a cabinet meeting.
"The government adopted this position after examining the political situation in Iraq and the advances made in building Iraq's own security force, as well as (after examining) our own capacity," Szmajdzinski said.
Poland, a close ally of the United States in the Iraqi conflict despite strong domestic opposition, controls an area south of Baghdad with 4,000 troops from the US-led multinational force under its command.
"Our allies know our capacity... This (withdrawal) was the subject of talks in the United States a few months ago. It is not a surprise move," said the defence minister.
Since 2003, when the UN-mandated multinational force deployed in Iraq, some 10,000 Polish soldiers have been sent to the country on tours of duty, Szmajdzinski said.
The cost to Poland of sending troops to Iraq was more than 660 million zlotys (160 million euros, 210 million dollars), while supplies and equipment for the mission have cost an additional 800 million zlotys. Part of the outlay was covered by the United States, Szmajdzinski stressed.
Following elections in Iraq on January 30, Poland cut its contingent in Iraq from 2,400 to 1,700 soldiers.
The next contingent of troops that will be sent to Iraq from Poland will number "several hundred soldiers less" than previous deployments, Szmajdzinski said.
"Like other countries, we are applying a strategy of withdrawal" from Iraq, he said.