Lance Corporal Timothy Darren Flowers (25), from the Nelson Drive area of the Waterside, died on Saturday after sustaining shrapnel injuries from an indirect fire attack on Basra Palace.

The Mayor of Derry, Drew Thompson, who is a friend of the family, said the man's mother was devastated by his death.

Known to friends and colleagues as Daz, he had been serving with the Royal Electrical and Mechanical Engineers in the south of Iraq. Lance Corporal Flowers, who had been attached to the 2nd Royal Tank Regiment and was serving with the Irish Guards Battle Group, died as he worked on vehicles.

He joined the Army in January 2003, after spending time in the RAF, and was on his second tour in Iraq. He has been with the Irish Guards Battle Group since March this year.

His death brings to 163 the total number of British soldiers to die in Iraq.

His superiors today revealed that Lance Corporal Flowers had given notice that he was planning to leave the Army to pursue a different career.

The Ministry of Defence, meanwhile, confirmed that he was working on the palace's vehicle park when the attack occurred.

Speaking after meeting with the young man's mother last night, the mayor said: "She is just devastated at losing her son."

Mr Thompson added: "This is a terrible thing to have happened to such a young man.

"It will have a wider impact across the city and region because a lot of people would have gone to school with him here, and he would often have visited his grandparents in Portstewart."

David Funston, former principal of Clondermot High School, which Lance Corporal Flowers attended from 1993 to 1998, said he was deeply saddened by the news of his former pupil's death.

"He was a very, very good student, very personable," Mr Funston said.

"He got on well with staff and other students and he looked to have a great future ahead of him. Unfortunately that was not to be."

Lieutenant Colonel David Catmur, Commanding Officer, 2nd Royal Tank Regiment, said: "The importance of his role can never be under-estimated because if it were not for Lance Corporal Flowers' skill and expertise the squadron would have to deploy without the protection the warrior offers.

"Lance Corporal Flowers was just the man for the job and I was always impressed by his remarkable determination and focus to work towards his one goal of keeping fit equipment in the hands of his squadron - a truly selfless individual."

The commanding officer of the Irish Guards Battle Group, Lieutenant Colonel Michael O'Dwyer described him as "a critical cog in the intricate workings" of the division.

"I was lucky to have known Lance Corporal Flowers. I will always remember one evening sitting under the starry Arabian sky with him listening to his views on life. He was bright, thoughtful and erudite with intelligent opinions," he said.