DEFENCE Secretary Geoff Hoon has confirmed a shake-up of the military, which could see the Queen's Lancashire Regiment merged with its neighbours.

Mr Hoon ended months of intense speculation when he told the Commons that a review would be taking place. But he has yet to release details of how regiments will be affected.

Army bosses are now working on the precise nature of plans to amalgamate 19 famous-name single battalion infantry units into seven multi-battalion regiments based on regions.

It is likely that the Preston-based QLR, the Liverpool-based Kings Regiment and the King's Own Royal Regiment based in Cumbria will become a single Lancashire and Borders Regiment.

However military chiefs hope to save some of the current cap badges, uniforms and titles attached to successor battalions in the new unit.

It is expected that the QLR name will be retained in a style such as "The First Battalion (Queens Lancashire), The Lancashire and Borders Regiment.

It would preserve the regimental tradition, mess dress and dress uniform of the QLR to promote its identity and history.

The Army currently has eight multi-battalion regiments, such as the Parachute Regiment, from which Chief of the General Staff Sir Mike Jackson comes.

He is believed to have been instrumental in enabling the reforms proposed by Mr Hoon getting through the military hierarchy.

He will now be crucial in the final shape of the new structure.

Mr Hoon said the Government was to move investment from personnel to high-tech, 21st century warfare.

He said: "The new structure will be based on regiments of two or more battalions, in largely fixed vocations, allowing individuals to move easily between these battalions.

"Details of the new organisation will be worked on by the Army and announced by the end of the year."

Mr Hoon said the overall size of the Army would be around 102,000 and the new regiments would be Lancashire and Borders, Scottish Highland, Scottish Lowland, Yorkshire, Welsh, Wessex and Mercia.