The BBC Belgrade Correspondent, Jacky Rowland, says President Milosovic is purging the top rungs of the establishment of anyone expressing dissent and replacing them with loyalists.

Last month he dismissed his chief spymaster, Jovica Stanisic, and Yugoslav Air Force commander, General Ljubisa.

State-run television news, which announced the latest dismissal on Tuesday night, said Gen Perisic had been replaced as head of the armed forces by Dragoljub Ojdanic, a man considered fiercely loyal to President Milosevic.

Gen Perisic has been given a new job as advisor to the Yugoslav Government on defence matters, a position which analysts describe as unimportant.

Perisic dissent

The dismissal of Gen Perisic has been forecast for some time.

Army became less important than special police

Mr Perisic had long complained of the downgrading of the Yugoslav Army in preference to state police forces who are personally loyal to Mr Milosevic.

Earlier this year, he opposed sending in the army to quell demonstrations in the Yugoslav republic of Montenegro.

He also attended the inauguration of a Milosevic rival as president of Montenegro.

More recently, Gen Peresic made a speech critical of Yugoslavia's political leaders at the height of the crisis with the West over the Kosovo conflict.

The dismissal of the president's head of intelligence last month sent shock waves through the country.

Mr Stanisic was widely regarded as invulnerable, since it is believed he could hold evidence linking President Milosevic to war crimes committed in Bosnia and Croatia.