The report will look into the way equipment is moved

The MoD is considering part-privatising key sections of its Defence Logistics Organisation, which is responsible for moving military hardware, provisions and personnel, the Independent on Sunday reported.

The newspaper said unions had been unofficially told of the scale of expected redundancies, following a review of operations by management consultants McKinsey.

The plans are reported to include major outsourcing to the private sector.

The MoD said no decisions had been made on jobs.

The Independent on Sunday claims to have seen a secret document which says cuts of between �253m to �486m could be made in the logistics support of the army and air force.

The final version of the report - a review of logistics from manufacture through to deployment in the field - is due to be published in July.

A report from trade unions Amicus, GMB, Prospect and the T&G says the proposals would damage the armed forces.