Silvio Berlusconi announced yesterday that he would begin withdrawing Italian troops from Iraq in September.

"I've spoken to [Tony] Blair about this," the Italian prime minister told a television interviewer.

"We've got to construct a precise exit strategy. Public opinion expects it, and we shall be talking about it soon."

Meanwhile, ministers are proposing an international conference on Iraq later this year to encourage the United Nations to reinvigorate the stalled reconstruction programme.

The event would bring together the countries contributing troops, those offering economic help and the UN, World Bank, International Monetary Fund and other international bodies.

British officials said it would probably take place in Brussels.