The UN Security Council has overwhelmingly approved a resolution allowing the US and Britain to continue their temporary administration of Iraq.
It also allows them to sell Iraq's oil to fund the reconstruction of the country.
The resolution also lifts all the sanctions that were imposed on Iraq 13 years ago, apart from an arms embargo.
The measure was adopted by a vote of 14 to zero, with Syria not participating.
Among those voting for the motion were France, Russia and Germany, which all opposed the war in Iraq.
UN Secretary General Kofi Annan has told the Security Council that he will appoint a special representative to Iraq 'without delay.'
The new resolution requires Mr Annan to appoint a special representative, to contribute to setting up an interim Iraqi-run authority and to take part in an advisory board auditing a new Development Fund financed by Iraq's oil revenues.
Among those voting for the motion were France, Russia and Germany, which all opposed the war in Iraq.
Speaking in Paris last night, after a meeting with his Russian and German counterparts, French Foreign Minister Dominique de Villepin said it was time to work towards a consensus in the Council.
The US Secretary of State, Colin Powell, has said Paris's backing for the resolution is a step in the right direction for imporving relations between the US and France.
Mr Powell, who is in Paris for preparations for next month's G8 summit of industrial nations, said work still needed to be done to heal the divisions in Iraq.
