Christopher Brown, 40, a mechanic in the Royal Air Force for almost 20 years until 1999 when his homosexuality became known, argued that his discharge contravened the European Convention of Human Rights.

He took the case to the European Court of Human Rights in Strasbourg, citing Article 8 of the convention which ensures the right to respect for private life.

The court was to have issued a verdict on Tuesday, but at the last minute an out of court settlement was announced.

Brown's lawyer Stephen Grosz said his client was pleased with the outcome, but disappointed that he was unable to have served in the Iraq war earlier this year.

"The only reason he was discharged was because of his sexual orientation," Grosz said.

A Ministry of Defence spokeswoman said: "In this case we have accepted a liability and have paid the compensation."

She added: "Diversity in the forces is now openly embraced."

Brown now works for an airline.

WAR.WIRE