A 43-year old woman who claimed she suffered sexual discrimination and was unfair dismissal from the British Army after transitioning has won a payout of £250,000.

The Ministry of Defence decided to settle Jan Hamilton’s case out of court.

She was a captain with service in war zones such as Bosnia and Iraq, where she was wounded by a roadside bomb. After returning to the UK she started gender reassignment treatments.

Ms Hamilton claimed her superiors ignored repeated requests from her to discuss her gender reassignment.

She was summoned to an Army medical in April 2007 and instructed to wear her male uniform.

As she refused to attend in male attire, a job as head of media relations in Gibraltar was withdrawn.

Ms Hamilton began legal action, claiming she would have been humiliated and demeaned by being asked to attend the medical in male Army uniform.

An MOD spokesman told the Daily Telegraph:

“Jan Hamilton has decided to bring her service with the armed forced to an end and is pursuing other career opportunities.”

Ms Hamilton featured in a Channel 4 documentary, Sex Change Soldier, earlier this year which brought her case to public attention.

She is thought to be a contestant in the next season of reality show Big Brother, which begins next month.