A senior U.S. official says the State Department will not renew Blackwater Worldwide's contract.
The Currituck County based company protects American diplomats in Iraq and its contract expires in May.
The Iraqis informed the State Department of the cancellation, which came amid lingering outrage over a September 2007 shooting in Baghdad's Nisoor Square that left 17 Iraqi civilians dead.
Copyright 2013 by The Associated Press. All Rights Reserved.