IMPEACH BUSH

BAGHDAD -- U.S. and Iraqi negotiators reached agreement on a security deal that calls for American military forces to leave Iraq's cities by next summer as a prelude to a full withdrawal from the country, according to senior American officials.

The draft agreement sets 2011 as the date by which all remaining U.S. troops will leave Iraq, according to Iraqi Deputy Foreign Minister Mohammed al-Haj Humood and other people familiar with the matter.

Teams of American and Iraqi negotiators spent months haggling over the deal, which represents a remarkable turnaround from just a few months ago, when talk of timetables and deadlines was routinely dismissed by the Bush administration and other Republicans in Washington.

Senior officials in Washington said the talks have concluded. The deal will be presented to the Bush administration and the government of Iraqi Prime Minister Nouri al-Maliki for formal approval or rejection.

"The talking is done," one U.S. official said late Wednesday night. "Now the decision makers choose whether to give it a thumbs up or a thumbs down."

The precise terms of the agreement weren't clear Wednesday night, and the deal's final status likely will remain unsettled for at least a few more weeks.

Gordon Johndroe, a spokesman for the National Security Council, cautioned that the deal was not yet complete. "Discussions are ongoing with the Iraqis to finalize a bilateral agreement," he said. "We are working to complete the agreement, but it is not final yet."

President George W. Bush is almost certain to accept the agreement, according to U.S. officials. The administration believes that the deal doesn't require congressional approval and won't present it to U.S. lawmakers.

The situation is more complicated in Iraq. The draft agreement must be approved by several layers of Iraqi political leaders. Several members of Mr. Maliki's cabinet have voiced opposition to elements of the deal. The Iraqi Parliament, which also has to sign off on the deal, is in recess until the end of next month.

The security deal came together after the Bush administration made concessions on several long-held positions. The White House softened its stance over a pullout date after it became clear that Mr. Maliki was adamant that the agreement contain at least a vague timetable for a U.S. withdrawal.

The administration also dropped its insistence that American contractors remain immune from Iraqi law. Western contractors -- especially those working for Blackwater, which is under investigation for a deadly shooting last year -- are deeply unpopular in Iraq.

One of the last remaining roadblocks had been whether U.S. military personnel would enjoy immunity from prosecution under Iraqi law. Mr. Humood, Iraq's chief negotiator on the agreement, said joint committees of U.S. and Iraqi officials will be formed to resolve such issues when cases arise.

Gen. David Petraeus, the top American commander here, said in an interview that the U.S. already was focusing on turning control of the country over to Iraqis.

"We have to let go, and we're not reluctant to do that. And the Iraqis are not reluctant to take control," Gen. Petraeus said.

Gen. Petraeus said coalition forces are already out of cities in the southern part of Iraq, and they are less visible in the western province of Anbar. Iraqi troops are mostly in charge in towns including Ramadi, he said. Gen. Petraeus leaves Iraq next month to become the top commander of all U.S. personnel in the Middle East and North Africa, succeeding Navy Adm. William Fallon, who resigned in March.

Iraq has seen attacks fall from 180 per day in June 2007 to 25 a day in June 2008, according to U.S. military figures. At the same time, Gen. Petraeus, architect of the military's counterinsurgency strategy in Iraq, has presided over a transfer of security responsibility from U.S. to Iraqi combat forces. Of the 150 Iraqi army combat battalions, 70% are now leading military operations, supported by Coalition forces, he said.

But the general added that no one is "giving each other high-fives." Although extremist groups such as al Qaeda in Iraq and rogue Shiite militias have been weakened, he said, they could gain strength again.

"There is a measure of hope in Iraq that was not present 18 months ago," he said. "Now, that's just a measure of hope. It's not a celebration."

Write to Gina Chon at gina.chon@wsj.com and Yochi J. Dreazen at yochi.dreazen@wsj.com