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The weapons, known as "dumb" cluster bombs, will be withdrawn immediately and destroyed, said Mr Browne.
He said the move meant the UK was the first world power to abandon their use.
But campaigners called on the government to scrap all cluster bombs, including so-called "smart" ones which have the capacity to self destruct.
The Ministry of Defence (MoD) says smart cluster bombs are legitimate weapons with significant military value.
Cluster bombs are shot from artillery or rocket ground systems or dropped from aircraft and disperse hundreds of smaller munitions, known as bomblets.
Unexploded bomblets can lie dormant for years until they are disturbed.
In February, at a conference in Norway, the UK, which has used cluster bombs in Kosovo and Iraq, joined 45 other nations in pledging to ban cluster bombs by 2008.