Rambahadur Limbu was a member of the Brigade of Gurkhas, a unit of Nepalis recruited into the British army that earned a reputation for fierce fighting, loyalty and bravery since they first served as part of the Indian army in British-ruled India in 1815.

"He has been a figurehead and exemplar of Gurkha bravery for generations of Gurkha recruits and soldiers," the Gurkha Brigade Association said in a statement.

"His loss will be felt profoundly by all those he has inspired."

Queen Elizabeth II awarded Limbu the Victoria Cross at Buckingham Palace in 1966 for gallantry during an attack on Indonesian troops the year before, during which he rescued two fellow soldiers.

Limbu had rescued two fellow soldiers during the engagement, part of the three-year "konfrotasi" conflict sparked by Indonesia's opposition to the formation of its now-neighbour Malaysia.

"I didn't think I was going to be shot," Rambahadur had told The Mirror in an interview in 2014. "All I cared about was rescuing my friends."

Limbu, by then a captain, served in the Sultan of Brunei's Army after leaving the British Army in 1985.

He lived in the eastern Nepali city of Damak after retiring in 1992.

British Ambassador to Nepal Nicola Pollitt travelled to Damak last September so that Limbu could sign the condolence book for Queen Elizabeth II after her death that month.

"He signed the book, recalling with pride and sadness his long service for Her Majesty," Pollitt tweeted at the time.

Limbu is survived by his wife Eunimaya and three children.