The U.S. and Iraq agreed to establish a committee to start discussions on a timeline to reduce the presence of coalition troops in the country, Baghdad said Thursday.

The two countries agreed to form working groups that would eventually lead to formulating "a specific and clear timeline ... and to begin the gradual reduction of its (the coalition's) advisers on Iraqi soil," the Iraqi foreign ministry said.

In a statement, the U.S. Defense Department confirmed upcoming meetings to discuss the "transition" of the coalition.

The U.S. has 2,500 troops in Iraq, advising and assisting local forces to prevent a resurgence of the Daesh terrorist group, which in 2014 seized large parts of Iraq and Syria before being defeated. Hundreds of troops from mostly European countries are also part of the coalition.

Iraq's government says Daesh is defeated and the coalition's job is over, but it is keen to explore establishing bilateral relations with coalition members, including military cooperation in training and equipment.

Iraq also says the coalition's presence has become a magnet for instability amid near-daily attacks by Iran-backed militias on bases housing the forces and U.S. retaliatory strikes, escalating since the Israeli war in Gaza began in October.

The talks are set to take place between military officials to assess the operational requirements and efficacy of Iraqi security forces and the threats they face, based on which both sides will determine how quickly the coalition is phased out and how future bilateral relations will look.

U.S. and Iraqi officials say the process is expected to take many months, if not longer, with the outcome unclear and no withdrawal of U.S. forces imminent.

Washington fears that a fast withdrawal may create a security vacuum that could be filled by arch-rival Iran or Daesh, which maintains sleeper cells in desert areas and has continued low-level attacks despite holding no territory.

The U.S. invaded Iraq and toppled leader Saddam Hussein in 2003, precipitating years of insurgency war and fighting among Iraq's ethnic and religious groups. It withdrew its troops in 2011 but sent thousands back after Daesh's surge into the country three years later.