Premier Romano Prodi said on Monday that the withdrawal of the Italian peacekeeping contingent from Iraq would be completed by December 2.
Italy, which did not take part in the United-States-led invasion of Iraq in 2003, sent a contingent afterwards to help reconstruction, perform peacekeeping duties and contribute to the training of Iraqi security forces.
At its height, the Italian contingent numbered 3,200, most of whom were based in the southern Iraqi town of Nassiriya.
"Only 60 or 70 Italian soldiers remain in Nassiriya to hand over the barracks to the Iraqi police," Prodi said in an interview with the Telelombardia TV network.
"By December 2 they will have come home too," he said, stressing that this was in line with the pledge he made in the run-up to 2006 elections.
The previous government of Silvio Berlusconi, which sent the troops in the first place, had also planned to withdraw soldiers by the end of the year.
Prodi said he had informed US President George W.Bush about the return of Italian troops. "He said he was sorry about that but that he knew were were going because I said so in the election campaign".
Since June 2003, some 30,000 Italian troops have been posted in Iraq. During that time 32 soldiers and one secret service agent were killed there.
"The Italian nation can be proud of the contribution made to the war against terror by its soldiers," Gen. George Casey, head of the multinational force in Iraq said in a speech last weekend.
During most of 2006, the Italian force was heavily involved in training Iraqi police and soldiers. A total of 1,700 soldiers and 12,000 police officers passed through Italian hands.
Responsibility for security in the Dhi Qar area was formally handed to Iraqi forces in September
