One of the United States' strong allies in Iraq has ended their combat there. Australia wrapped up their operations in Iraq on Sunday.

Soldiers lowered the Australian flag that had flown over Camp Terendak in the southern Iraqi city of Talil.

The combat troops were expected to return to Australia over the next few weeks, with the first of them already having arrived home. About 300 troops will remain in Iraq for logistical and air surveillance duties, as well as guarding Australian diplomats and others high-profile in Baghdad.

Australian military leaders say their troops are spread thin in East Timor, Afghanistan and Iraq.