Israel's outspoken army chief is to be moved from his post this summer, just before Israeli forces are due to start pulling out of the occupied Gaza Strip.
The dismissal of Lt Gen Moshe Yaalon has triggered strong criticism of Defence Minister Shaul Mofaz.
Some Israeli media reports suggest personal emnity from Mr Mofaz may have played a part in in the decision.
Israel's parliament is expected to give its final approval for the Gaza pullout plan later on Wednesday.
But some politicians are saying the effective dismissal of Gen Yaalon might put the plan at risk.
'Slap in the face'
Gen Yaalon has served as Israel's top soldier for the last three years and his tenure was expected to be extended for another year, as is customary for Israeli chiefs of staff.
Commentators say that a change at the top of the army at such a sensitive time is likely to have a very unsettling effect.
Israel's most popular daily paper, Yediot Aharonot, called it "a slap in the face" in a front-page commentary.
Some analysts are predicting a violent confrontation between soldiers and some of the 8,000 Jewish settlers in Gaza who are to be moved as part of Prime Minister Ariel Sharon's disengagement plan.
The announcement of Gen Yaalon's departure follows just days after it was revealed that Avi Dichter, chief of Israel's internal security service Shin Bet, would be replaced in May.
A leading Labour Party politician expressed concern about the replacement of the two key figures.
"For both the Shin Bet chief and the army chief, who are preparing the disengagement, for them not to be the ones implementing, it is a problem," cabinet minister Haim Ramon said.
In 2003 Gen Yaalon blamed the defence minister's hardline policies for increasing Palestinian militancy and triggering the resignation of then-Palestinian Prime Minister Mahmoud Abbas.
He is also reported to have opposed the government's unilateral approach to the Palestinian problem and to have angered Mr Sharon by questioning the Gaza plan.
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