Up to 800 Gurkha troops, an entire battalion, could be phased out of the Royal Army as part of a series of defence cuts being applied across the board. Strangely, the reason for the depletion of force levels may be the result of a hard won victory for the Gurkhas for better pay and pensions.

A dramatic improvement in pay and pension rights for these hill warriors from the Himalayan republic of Nepal over the past two years has now made the ''Johnny Gurkha'' too expensive to maintain at their existing force level of two infantry battalions.

The Gurkhas have a unique record of serving the armed services of three countries simultaneously – their own country, Nepal, the Indian Army and the United Kingdom's Royal Army. While in India and Nepal the Gurkha is universally known by the appellation or honorific, 'Bahadur' or 'brave,' the Royal Army addresses them differently as ''Johnny.'

Royal Army sources told media that the regiment survived cuts five years ago only because their poor pay and pensions made them an attractive proposition. New court rulings, providing them better pay and pension, now makes them more vulnerable in a wide-ranging defence review that seeks to slash defence spending by 10 per cent.

Early this year, the High Court gave Gurkhas the right to remain in Britain after serving - and also brought their pay up to the same level as the regular Army. The campaign, led by actress Joanna Lumley, forced Gordon Brown's government into performing a humiliating U-turn.

The ruling left the Government with a huge bill for providing for pensions for those settling in Britain. Military sources now say that the Gurkhas will be No.1 on the list when it comes to cutting infantry battalions.

According to Army sources, though the Gurkhas were well-recruited, and also very good soldiers, they were now no less expensive than any other unit. Earlier, post-retirement, the Gurkhas would return to the hills of their native land with lower pensions because of lower costs of living. Now that Johnny, along with his dependents, can remain in Britain post retirement, with a full pension, makes him an expensive entity.

Under a deal between Britain, Nepal and India in 1947, Nepalese 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 this year, Justice Blake ruled that this was unlawful and breached the human rights of Gurkhas who had served the British Crown. Army sources now say that as a result of the ruling, the bill could come to as much as £1billion.

Nepalese Gurkhas have served Britain for nearly 200 years though the current regiment was formed only in 1947 after the exit of Britain from India. Both the armies divided the Gurkha regiments as an asset.

The regiment, known as the Brigade of Gurkhas, both in the Indian and the Royal Army, is made up of 3,500 Nepalese fighting men. The UK Brigade of Gurkhas is based in Kent and has two 800-strong infantry units - the 1st and 2nd Battalions, The Royal Gurkha Rifles. The rest are employed in logistics and engineering.

The battalions - with 13 Victoria Crosses between them - have seen frontline service in Afghanistan and two Gurkhas have lost their lives there.

Royal Army is faced with an uphill task of keeping all its 36 infantry battalions intact, because of increasing pressure from the Navy and the RAF for expensive equipment programmes already set in motion and difficult to scrap.