BBC News - 'Last chapter' hailed in Afghan security plan
Leon Panetta's remarks came as he welcomed Afghan President Hamid Karzai to the Pentagon for talks.
Mr Karzai said he was confident the two countries could "work out the modality for bilateral security" during his three-day trip to Washington.
The Afghan president is scheduled to meet President Barack Obama on Friday.
The US and Afghanistan have reached the "last chapter" in an effort to make Afghanistan secure and sovereign, the US defence secretary has said.
Mr Karzai said he was confident the two countries could "work out the modality for bilateral security" during his three-day trip to Washington.
The Afghan president is scheduled to meet President Barack Obama on Friday.