Basra: British troops on Sunday handed over security control of Basra to Iraqi authorities, marking the end of nearly five years of British control of southern Iraq.

The memorandum of understanding making the transfer was signed by Basra governor Mohammed Al Waili and Major General Graham Binns, head of British forces in Basra.

The handover comes three months after British troops pulled out from Basra city to their airport base.

The handover of Basra, the scene of most violence in Iraq, will be the biggest test yet of the Baghdad government's ability to maintain security without foreign troops.

Iraqi forces say their 30,000 troops and police in the area can now keep peace.

"(This) marks an important milestone in Iraqis taking responsibility for their own destiny," said Lieutenant-General Bill Rollo, the top British general in Iraq.

The 4,500 British troops still in Iraq will now focus on training Iraqi forces. Britain will be cutting down the size of its troops to 2,500 next year.