The partners of gays and lesbians serving in the British Armed Forces will soon be recognised as fully-fledged spouses, eligible for all the rights and benefits currently accorded only to married couples, The Observer reports.

The Ministry of Defence (MoD) offered a key concession after meetings with the Armed Forces Lesbian and Gay Association.

The highly controversial move, which may not only allow gay partners to receive pensions and other benefit, may also permit same-sex couples to live openly on army bases in the UK and overseas.

Unsurprisingly, gay service personnel have supported the new moves. Lt Commander Craig Jones, one of the most senior officers to come out, told the London based paper that he would be keen to live with his partner in Royal Navy married accommodation.

Until January last year, homosexuality was forbidden in the armed forces and was the main reason why some 200 personnel were slacked yearly. The ban was lifted after the European Court of Human Rights ruled it unlawful. The court awarded �400,000 compensation to four military personnel.

Over the weekend, many senior officers fought the lifting of the ban. One senior officer branded it "political correctness gone mad."

The MoD has stated that it is trying to move ahead of European legislation rather than merely react to it. A European directive that will come into force in 2003 will make it illegal for employers to discriminate on the grounds of sexual orientation.