A new law was one of 40 recommendations of a study ordered by Prime Minister Gordon Brown into ways to improve relations between the public and the military.

It follows a number of high-profile incidents of apparent discrimination, including an army officer in service dress being refused entry to the Harrods store in London.

MP Quentin Davies, who carried out the study, called for "legislation making discrimination directed at those wearing military uniforms by purveyors of public or commercial services an offence". He also said assaults or threats of violence against anyone in uniform should be considered an aggravated offence.

Armed Forces Minister Bob Ainsworth said the Government was now engaged in discussions about how such a law could be introduced.

He said: "We've all heard of the instances of military people being discriminated against. I do not believe that they are widespread, but I do believe they are totally and utterly unacceptable."

He said they were no different to other forms of discrimination and needed to be outlawed. Mr Davies confirmed: "The Government have accepted that recommendation and we will get that protection."

Other incidents of discrimination highlighted by the report included troops at Birmingham and Edinburgh Airports being told to change into civilian clothes or avoid public areas, injured veterans being abused by members of the public at a swimming pool, and intimidation and abuse levelled at RAF personnel in parts of Peterborough.

The latter incident was highlighted after personnel there were told not to wear their uniform in public to avoid further incidents. Mr Davies' report also recommended that troops should be encouraged to wear military dress on all appropriate occasions in public.

Mr Ainsworth confirmed the Government was considering marking a new national day of celebration of the Armed Forces by making it a public holiday. Among the report's other recommendations were an increase in the number of young people, especially at state schools, joining cadet forces and more onus on local councils to ensure local units returning from the frontline are given home-coming parades.