Part-time members of the Royal Irish Regiment have been told their contracts will not be renewed, it was claimed last night.
The claims have deepened the uncertainty over the regiment's future.
The Democratic Unionist Party's Mr Ian Paisley jnr said he had documentation that proved no new deals would be tabled.
He said: "Part-time Royal Irish Regiment members are now being told they are surplus to requirements. This information runs contrary to assertions from the Northern Ireland Office that there are no current plans to disband the capability of the Royal Irish."
An internal draft memo circulated by the General Officer Commanding in Northern Ireland, Lieut General Philip Trousdell, claimed disbandment of the three battalions was inevitable once security normalisation has been achieved.
But the British government has insisted no decision has been taken and stressed that its plans to cut troop levels in the North from 14,500 to 5,000 depend on the IRA declaring its war is over.
Mr Paisley did not disclose how many of the 1,400 part-time members of the Royal Irish based in Portadown, Co Armagh, were told they would not be getting new contracts.
A defence spokesman was unable to confirm the claims, but explained that all part-timers were employed on one, two or three-year deals.
He said: "If a soldier meets the required criteria, which includes physical fitness and the satisfactory completion of his or her duties, they would normally continually serve. Obviously contracts are not renewed, for example on medical grounds, but we are unable to discuss individual cases."
Republicans and nationalists have urged the Government to abolish the Royal Irish.
The row has deepened divisions within David Trimble's Ulster Unionists, with hardliners urging him to reject the British and Irish joint declaration setting out demilitarisation measures.
The 110-strong party executive met last night to agree a resolution on the future of the Royal Irish which will be put to UUP's members later this month.