Iraqi defence minister Najah al-Shammari of Iraq and Defence Secretary Ben Wallace (Picture: MOD).
The UK has committed to continuing its military support to Iraq, with a new agreement focusing on education.
The deal confirms British troops will work alongside Iraqi Security Forces to develop their intelligence structures and provide wider training and development.
The UK has already trained more than 103,000 Iraqi forces in infantry and weapons maintenance, counter IED, medical and engineering skills.
Around 500 British personnel are currently in Iraq, training and developing the skills and knowledge of local forces, as they deal with the ongoing insurgent threat from so-called Islamic State, also known as Daesh, and other terrorist groups.
Defence Secretary Ben Wallace met with his Iraqi counterpart, Najah al-Shammari, to sign the deal.
Mr Wallace said: "We are under no illusions and fully recognise that the threat from Daesh and al-Qaeda is still very real.
"This document is a signal of our commitment to continue to stand shoulder-to-shoulder with Iraq until that danger has been diminished, and also to form a longer-term defence relationship."