Sydney: Australia's top military personnel believes the time to withdraw forces from Iraq has arrived.

Citing that responsibility has been turned over to Iraqi forces, Air Chief Marshal Angus Houston said their objectives had been achieved. “It's time to leave," he added.

Currently 550 troops and another 1,000 personnel are stationed in Iraq, particularly in the southern provinces of Al-Muthanna and Dhi Qar.

Prime Minister Kevin Rudd is confident that most troops will return by mid-2008.

However, some forces will remain, including the air bases outside Iraq, a warship guarding offshore oil terminals and the Baghdad security team.