"We have agreed that this agreement will not become a new long-term occupation of Iraq, so there will be no endless U.S. bases in Iraq," Hoshiyar Zebari said.
He added that the agreement would be valid for a period of two-three years, after which it would depend on the situation on the ground and whether Iraq needed support from foreign troops.
The official said Iraq had no plans to sign any agreement "that would infringe on its sovereignty."
A security deal between Baghdad and Washington was to have been signed in July, but was delayed mainly due to the lack of agreement on a deadline for the troop withdrawal and the controversial issue of immunity for U.S. troops and foreign contractors.
The deal will allow U.S. forces to remain in Iraq beyond the end of this year, when a UN Security Council mandate is due to expire. There are currently 146,000 U.S. troops deployed in Iraq.
Zebari said previously the deal was "very close," and would include "time horizons" for a U.S. pullout, but he did not specify any particular dates.
Iraq earlier said it would like U.S. troops out by the end of 2011.
Democratic presidential candidate, Barack Obama, has said he favors pulling combat troops out of Iraq within 16 months.
Republican rival John McCain caused uproar earlier in the year when he suggested U.S. troops would be in Iraq for the next 100 years. He later withdrew the statement and said he would be guided by military commanders on any troop pullout from Iraq.
