The troops were attacked as they tried to help other soldiers who were trapped in a Land Rover that had been hit by a rocket propelled grenade.
The soldiers died in hospital, and at least two Iraqis who were nearby were injured in the attack.
This brings the number of UK troops killed fighting in Iraq to 24, and 44 more have died in other accidents.
In other parts of Iraq, the US attacked Falluja, which is held by rebel forces, bombing a site it said was held by terrorists.
Sadr City in capital Baghdad was also hit overnight, with dozens of tanks roaming the streets.
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