Armed forces sports and welfare organisations are to benefit from a £2.5 million goodwill donation from security group G4S.
The firm is handing over the cash after thousands of military staff had to step in at short notice to provide security at the Olympic Games.
Around 4,700 troops from the Army, Royal Navy and Royal Air Force had to be drafted in and many of them had their leave postponed after G4S was unable to train as many workers as it had previously claimed it could.
A G4S spokesman said: "We wanted to recognise the huge contribution made by the military after it became clear that there would be shortfall in workforce delivery."
Defence secretary Philip Hammond welcomed the gesture and observed the move would go some way to making up for the action that had to be taken.
"This contribution … is welcome news for the service welfare funds," Mr Hammond stated.
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