But George Robertson insisted practical difficulties remained before gays could openly serve in the British forces.

George Robertson: "People should be treated equally"

In an interview with the Daily Telegraph, Mr Robertson said: "The issue of principle says that people should all be treated equally.

"The armed forces have got to be modern. They are defending society so they have got to be part of society.

"It is not politically correct to say we should have the best people from every section of society because if you are excluding some people artificially then you are not getting the best."

He added that allowing gays into the Army, Navy and Air Force creates "an issue of practice, of operational effectiveness, which has also got to be taken into account."

Free vote on change

The Ministry of Defence plans to include its proposals on homosexuals in the army in the Armed Forces Bill in the year 2000.

Mr Robertson said he would give a "firm recommendation" but MPs would be allowed a free vote in the Commons.

The United Kingdom remains the only country in the European Union that continues to discriminate against gays when recruiting for the armed forces.

In the United States, one of President Bill Clinton's first acts was introducing a "don't tell, don't ask" policy on the issue.

European court to hear test case

Some homosexuals are refusing to wait for the British Government to act.