The cut would be part of a wider slashing of the £34billion defense budget, which has risen steadily since the invasion of Iraq in 2003, Rupert Hamer writes for www.mirror.co.uk.
The dramatic improvements in Gurkha pay and pension rights in the past two years mean it is too expensive to maintain two infantry battalions.
The regiment only survived cuts five years ago because their poor pay and pensions made them good value for money. But senior officers say that new rulings giving them better pensions mean they are vulnerable in a wide-ranging defense review.
In the High Court earlier this year all Gurkhas won the right to be allowed to remain in Britain after serving -- and their pay was brought up to the same level as the regular Army. The campaign led by actress Joanna Lumley had forced Gordon Brown into a humiliating U-turn.
But it left the government with a huge bill for improving pensions for those settling in Britain. On Saturday night a senior military source said: "If it comes to cutting infantry battalions, the Gurkhas are now No1 on the list.
"They were only saved from the axe in the last defense cuts because they were seen as being fantastic value for money. Although they are very well-recruited and very good soldiers, they are now no less expensive than any other unit.
The fact that all Gurkhas and their dependents can now remain in Britain after leaving the army means they will get full pensions. Before, they would return to Nepal, where their pensions are lower because of the lower cost of living. The bill could be as much as £1billion -- making them an expensive unit to maintain."
The Brigade of Gurkhas -- motto: "Better to die than be a coward" -- is made up of 3,500 Nepalis fighting men, who still carry their traditional khukuri knives.
It was formed in 1947, although Nepali Gurkhas have served Britain for nearly 200 years. It is based in Kent and has two 800-strong infantry units -- the 1st and 2nd Battalions, The Royal Gurkhas Rifles.
The rest support the infantry, doing logistics and engineering. They will be redeployed elsewhere in the army.
The battalions -- with 13 Victoria Crosses between them -- have seen frontline service in Afghanistan and two Gurkhas have lost their lives there.
But planned cuts of up to 10 per cent to the defense budget mean the loss of at least one army battalion looks inevitable.
Army bosses face a fight to keep all 36 infantry battalions because the Navy and RAF have equipment programs which have already been signed off and will be difficult to scrap.
Under a deal between Britain, Nepal and India in 1947, Nepali soldiers would serve for 12 years then return to the Himalayas with a bounty and a pension. The agreement ruled out rights to British citizenship.
But in May Justice Blake ruled that this was unlawful and breached the human rights of Gurkhas who had served the British Crown.
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