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 Lawmakers and anti-war protesters have repeatedly demanded that an independent panel scrutinize what they say are a range of errors made by Britain, the United States and other allies in prewar intelligence and postwar planning.
Brown's spokesman Michael Ellam said the prime minister would tell Parliament later on Monday how the inquiry will be conducted, and would not comment on whether the inquiry would be held in public or private.
Britain's remaining 4,000 troops ended their six-year operation in Iraq in April, a mission that cost the lives of 179 service personnel and was deeply unpopular with the public.
Troops expect to complete a withdrawal from the southern Iraqi city of Basra, where British personnel were mainly based, by the end of July.
Opponents of the Iraq war have urged Brown to allow the inquiry to investigate prewar discussions between former U.S. President George W. Bush and then-British Prime Minister Tony Blair in 2002.
"There needs to be a full public inquiry to find out exactly why we were taken to war and to investigate the discussions between Tony Blair and George Bush in 2002," said Lindsey German, of Britain's Stop The War Coalition.
Britain has previously held two inquiries into aspects of the decision to join the U.S.-led war.
One cleared the government of blame for the death of David Kelly, a government weapons scientist who killed himself in 2003 after he was exposed as the source of a British Broadcasting Corp. report that accused Blair's office of "sexing up" prewar intelligence.
A separate 2004 inquiry into intelligence on Iraq also cleared Blair's government, but criticized intelligence officials for relying on seriously flawed or unreliable sources.
British Foreign Secretary David Miliband has said previously the inquiry is likely to be held in private to preserve confidentiality for troops, citing as a possible model the behind-closed doors inquiry that followed the 1982 Falklands War.
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