The Army is to outsource the recruitment of its soldiers and officers to the private sector.

The Army will host an event later this month to inform potential bidders about the details of the contract.

Recruitment sources say that the contract will be worth about £100m over a decade and may not be finalised for another two years.

One potential bidder told the Independent on Sunday that the Royal Air Force and the Royal Navy will “also be going down the outsourcing route” if the contract proves successful. The source added: “The suspicion is that this will be chased by business process outsourcers, recruitment firms and service companies.

“That means you can throw into the bidding equation names such as Capita, Serco, Manpower, G4S, Hays, VT Group and the French firm Steria.”

An Army spokesman said: “An industry day is to be held on 28 May. Information will be released that day so that there is a level playing field [for any party that wants to bid].”