A senior US administration official said that further reductions in troops numbers would continue through the end of 2014.
The announcement comes as the US began withdrawing military 120,000 containers of equipment from Afghanistan through the NATO supply routes in Pakistan earlier this week.
"The President made his decision based on the recommendations of the military and his National Security team, as well as consultations with President Karzai and our international coalition partners. Before making his announcement, President Obama spoke on the phone with President Karzai, Prime Minister Cameron and Chancellor Merkel to inform them of his decision," said the official.
According to the White House website, there were nearly 180,000 US troops when Obama took office in 2009. At least 60,000 US troops are currently stationed in Afghanistan.
The move follows a Naval cut in the region as well with only the aircraft carrier USS John C Stennis deputed with the US fifth fleet providing support missions for mission Enduring Freedom in the Arabian Sea. At one time, the US had as many as three aircraft carriers in the region. The US Navy last week deferred the deployment of the Nimitz class carrier USS Harry S Truman to the Gulf due to budget cuts.
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After this announcement, the Taliban shall be gearing up to occupy the half of the present territory held by Afghan and foreign forces.