BAGHDAD » The U.S. is abandoning plans to keep U.S. troops in Iraq past a year-end withdrawal deadline, the Associated Press has learned. The decision to pull out fully by January will effectively end more than eight years of U.S. involvement in the Iraq war, despite ongoing concerns about its security forces and the potential for instability.

The decision ends months of hand-wringing by U.S. officials over whether to stick to a Dec. 31 withdrawal deadline that was set in 2008 or negotiate a new security agreement to ensure that gains made and more than 4,400 American military lives lost since March 2003 do not go to waste.

About 800 Schofield Barracks soldiers with the 25th Infantry Division headquarters run operations in two-thirds of Iraq and will soon have control over the entire country as the United States moves forward with the withdrawal.

Schofield soldiers in Hawaii, some of whom were spending their day off Saturday in Wahiawa, reacted positively to the news, although none would give their names citing a base policy barring soldiers from speaking to the media.

"That’s great news," said one soldier. "That means we’re moving out of there and getting to bigger and better things."

Another soldier said he’s glad to see others in his division coming home but he wondered what the future holds for Iraq.

"I just hope the bad guys don’t load up again," he said. "As soon as we back off, the insurgents start up again."

Still, he said, he doesn’t expect much to change in Iraq over the long haul. "The religious factions there are never going to settle their differences."

In recent months, Washington and Iraqi leaders have been discussing the possibility of several thousand American troops remaining to continue training Iraqi security forces. A Pentagon spokesman said Saturday that no final decision has been reached about the training relationship.

But a senior Obama administration official in Washington confirmed Saturday that all American troops will leave Iraq except about 160 active-duty soldiers attached to the U.S. Embassy.

A senior U.S. military official confirmed the departure and said the withdrawal could allow future but limited U.S. military training missions in Iraq if requested.

Both officials spoke on condition of anonymity because of the sensitivity of the issue.

Throughout the discussions, Iraqi leaders have adamantly refused to give U.S. troops immunity from prosecution in Iraqi courts, and the Americans have refused to stay without it. Iraq’s leadership has been split on whether it wanted American forces to stay. Some argued that further training and U.S. help was vital, particularly to protect Iraq’s airspace and gather security intelligence. But others have deeply opposed any American troop presence.

Prime Minister Nouri al-Maliki has told U.S. military officials that he does not have the votes in parliament to provide immunity to American trainers, the U.S. military official said.

A Western diplomatic official in Iraq said al-Maliki told international diplomats he will not bring the immunity issue to parliament because lawmakers will not approve it.

A White House spokesman, Tommy Vietor, said discussions with Iraq about the security relationship between the two countries next year were ongoing.

Pentagon press secretary George Little said the U.S. remains "committed to keeping our agreement with the Iraqi government to remove all of our troops by the end of this year."

"At the same time we’re building a comprehensive partnership with Iraq under the Strategic Framework Agreement including a robust security relationship, and discussions with the Iraqis about the nature of that relationship are ongoing," Little said.

The Strategic Framework Agreement allows for other forms of military cooperation besides U.S. troops on the ground. Signed at the same time as the security accord mandating the departure deadlines, it provides outlines for the U.S.-Iraqi relationship in such areas as economic, cultural and security cooperation.

Iraqi lawmakers excel at last-minute agreements. But with little wiggle room on the immunity issue and the U.S. military needing to move equipment out as soon as possible, a last-minute change between now and Dec. 31 seems almost out of the question.

Regardless of whether U.S. troops are here, there will be a massive American diplomatic presence.

The U.S. Embassy in Baghdad is the largest in the world, and the State Department will have offices in Basra, Irbil and Kirkuk as well as other locations around the country where contractors will train Iraqi forces on U.S. military equipment they’re purchasing.

About 5,000 security contractors and personnel will be tasked with helping protect American diplomats and facilities around the country, the State Department has said.

The U.S. Embassy will still have a handful of U.S. Marines for protection and 157 U.S. military personnel in charge of facilitating weapons sales to Iraq.

In Wahiawa, merchants said they’re happy more soldiers will be coming home soon, noting that some 80 percent of their business comes from Schofield.

"Thank God," said James Molina, an employee of The Tat Cave, a tattoo parlor that typically gets a bump in business when soldiers return. More important, Molina said, "the good thing is we don’t have American lives dying over there."

Lenny Maxwell, a barber at KC’s Barber Shop for eight years, said more troops at home means more business.

Maxwell said he believes soldiers have different opinions about coming home depending on the status of their personal lives.

Many soldiers, especially ones who don’t have families, enjoy the additional money that comes with being deployed in a war zone, he said. "The downside is if you’ve got families," he said, noting that most soldiers with spouses and children would prefer to be home.

Star-Advertiser reporter Gordon Y.K. Pang contributed to this report.