"The two countries recognized that in light of significant progress towards eliminating the ISIS threat, over the coming months the US would continue reducing forces from Iraq," a joint statement said, without giving figures.

"The United States reiterated that it does not seek nor request permanent bases or a permanent military presence in Iraq," it said.

Iraq, in turn, promised to protect bases housing US troops after a series of rocket attacks blamed on pro-Iranian paramilitary groups.

The two countries on Thursday held their first strategic dialogue in more than a decade, months after Iraqi lawmakers demanded that US forces withdraw in the wake of a US drone strike in Baghdad which killed a top general from neighboring Iran.

Relations have since stabilized under a new US-friendly Iraqi prime minister, Mustafa Kadhemi, and the dialogue was held virtually due to coronavirus precautions.