Britain signs long-term partnership with Afghanistan

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"Obviously Britain has paid a very heavy price fighting the insurgency in Afghanistan and tragically we've lost another soldier from the Yorkshire regiment recently and my thoughts and the thoughts of everyone in Britain will be with the family of that soldier for the loss that they have suffered," Cameron told the press at Chequers, the official country residence of British prime ministers.

But he said the British troops are making progress in Afghanistan and Britain wants to have "a long-term relationship with Afghanistan long after our combat troops have come home and that will happen at the end of 2014."

"That will be a relationship about diplomacy, about aid, about trade, about investment and about very strong two-way diplomatic ties and conversations like we've been having today," the prime minister added.

President Karzai, during his second visit to Britain, said the signature today is one more step towards the commitment of the Britain towards Afghanistan and into the long-term.

It will also "take us into a future where Afghanistan will benefit from the assistance and cooperation and help of Britain," Karzai added.

Cameron has committed to pull out the British troops from Afghanistan by the end of 2014, the same time when the Nato mission in the country is due to end