Around 11,000 British troops based in Germany will return home by 2016 under plans which will see nearly £2 billion invested in Army housing and bases, Defence Secretary Philip Hammond will announce today.
Under the speeded-up withdrawal, the remaining 4,500 troops will be back in the UK by 2019, a year earlier than planned.
Around £1bn of the funding being announced today will go towards 1,900 new houses for service families and accommodation for 7,800 single soldiers.
Another £800 million will be spent on infrastructure and refurbishment of bases.
The Government hopes the plans will mean more cash is ploughed back into the British, rather than German, economy as well as creating new construction jobs in the UK.
Savings of around £240 million a year are also expected to be made through reductions in operating costs.
Wounded soldiers to receive advanced artificial limbs
Their lives and their bodies have been shattered but fighting spirit remains - now wounded servicemen and women are looking to the future with confidence. Soldiers, disabled in battle, will get the most up to date artificial limbs available. Charlotte Wilkins reports.
Defence Secretary 'delighted' about prosthetic advances
Around 160 individuals who were injured in Iraq or Afghanistan, will benefit from Government funds for the most up-to-date prosthetic limbs available.
Defence Secretary Philip Hammond said: "One of this Government's top priorities has always been to give our troops the best possible care and support."
Mr Hammond said he was "delighted" to announce funds of £6.5 million which will be used to ensure UK servicemen and veterans injured in Afghanistan or Iraq have the opportunity to "upgrade to the most technologically advanced prosthetics currently available."
VIDEO: The charity Help for Heroes will use the equipment at its new recovery centre at Tedworth House near Salisbury. The injured service men and women will be helped to adapt to their new ways of life.