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."
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The men were detained as part of an investigation by MI5 and the Metropolitan Police's Counter Terrorism Command.