But the 26-year-old paratrooper, fighting for his release on licence from Wakefield jail, plans to contest his dismissal.
The campaign for his release has gained support from many quarters, including from within the Army and a plea of mitigation is to be sent to his commanding officer later this week.
A decision on whether to retain Clegg will be made at an appeal to the Army Board. Under military regulations, no one serving a prison term can continue in the forces.
However, Clegg is hopeful he will be retained because the Secretary of State for Defence, Malcolm Rifkind, the most senior member of the Army Board, has expressed an interest in the case.Reuse content