"KFOR is looking to shift to the next phase of operations - to a deterrent presence," the official told at a news briefing on Monday.

He added that a review of the current mission had led to a reassessment of the security situation, which found that the time was right for a reduction of troops.

"This move is the next legal step in devolving responsibility to the local forces, but (we want) to do so in a way that maintains stability."

The official said the military recommendation had been considered by NATO ambassadors and was to be decided at a NATO defence ministers meeting in Brussels this week.

The Kosovo Force (KFOR) was established after a 1999 NATO bombing campaign ended fighting between Serbian forces and fighters from the ethnic-Albanian majority in Kosovo.

Germany, with 2,300 troops in Kosovo, has the largest contingent of any of the 38 countries that contribute soldiers to KFOR. Last month, the German parliament approved a 12-month extension of the Bundeswehr troop presence in Kosovo, saying that the situation in the region had improved but was still too fragile to warrant a pull-out.

In February 2008 Kosovo declared independence from Serbia and has been recognized by around 80 countries, including the US and most European Union nations.

Serbia and Russia continue to oppose Kosovo's independence.

Most of Kosovo's two million people are ethnic Albanians but the landlocked Balkan country continues to be rocked by ethnic tensions between Serbs and Albanians.

ai/Reuters/AFP/dpa
Editor: Chuck Penfold