The Speaker of the Iraqi parliament has resigned, removing the legal obstacle which had threatened to prevent thousands of British troops staying in the country.

A row over Mahmoud al-Mashhadani, sparked by a debate over the Iraq journalist who threw his shoes at President George Bush, was eating into parliamentary time needed to pass laws allowing the troops to remain until they are brought home next summer.

But yesterday Mr al-Mashhadani tendered his resignation and it was accepted by a majority of the deputies attending a closed-door emergency session after days of bickering and negotiations.

The new laws are needed to legalise British forces being in the country because a UN mandate authorising their presence expires on December 31.