(Updates with fresh quotes)

By Aref Mohammed

BASRA, Iraq, April 14 (Reuters) - British forces killed eight gunmen laying landmines in the volatile southern Iraqi city of Basra, close to where four British soldiers were blown up earlier this month, the military said on Saturday.

British forces in southern Iraq are pursuing a more aggressive policy towards Shi'ite militias as they prepare to hand over security control of Basra to Iraqi security forces later this year.

Stabilising the port city is crucial for Iraq as it is the hub for the country's largest oilfields and the source of 90 percent of the government's revenues.

British military spokesman Lieutenant-Colonel Kevin Stratford-Wright said eight militiamen were killed when two roadside bomb teams were attacked by British forces while laying devices on the western outskirts of Basra on Friday night.

"Precision guided ground to ground missiles, tank fire and 105mm light gun were employed. Those who were attacked ... were seen laying their devices beside the road in the path of our vehicles. We even have video recording of them doing so."

Four British soldiers and their civilian interpreter were killed in the area on April 5 when a roadside bomb tore into their Warrior armoured fighting vehicle. It was one of the worst single losses of life suffered by the British in Iraq since the U.S.-led invasion in 2003.

"It is not possible to directly link those killed last night with last week's roadside bombs. However, these militiamen were intent upon launching exactly the same type of attack in the same area," Stratford-Wright said.

Basra police chief General Mohammed Hammadi confirmed there had been clashes but said he had record of any casualties.

While Basra has not experienced the sectarian violence seen in the capital, Baghdad, Shi'ite militias are a powerful force in the city and have frequently attacked foreign troops. Tensions between rival parties vying for control of Basra's vast oil wealth also sometimes spill over into violence.

British forces, which have so far handed over two of their four bases in Basra to Iraqi security forces, have increasingly confronted the militias, including radical cleric Moqtada al-Sadr's Mehdi Army.

"Somebody, somewhere, has made a decision to increase the number of attacks against us. Who has decided that is a matter of conjecture," Stratford-Wright told Reuters.

HANDOVER

British forces are due to hand over neighbouring Maysan province to Iraqi control later this month, although their troops pulled out of the capital, Amara, last year and repositioned themselves along the Iranian border.

Their withdrawal from their heavily mortared base in Amara was greeted as a victory by the Mehdi Army, which Washington says is the greatest threat to peace in Iraq.

Stratford-Wright dismissed suggestions that the increased number of attacks on British forces might lead to a delay in handing over Basra to Iraqi control.

"It is not the level of attacks against us which defines whether the Iraqi security forces will be able to handle security in Basra. We have to build their capability and bear down on the militia," he said.

Prime Minister Tony Blair said in February Britain would begin withdrawing a quarter of its 7,000 troops stationed mainly in and around Basra later this year. (Additional reporting by Aref Mohammed in Basra)

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