The prince is a member of the Blues and Royals, part of the Household Cavalry, along with the Life Guards. He would transfer to the Household Mounted Regiment, the Sun reported Friday.

"If he can't be mounted with his men in a tank he will be mounted on a horse," a senior Household Cavalry officer said of Harry's proposed new role.

Prince Harry was told he would not be going to Iraq, just days before he was due to fly to Basra. Army chief Gen. Richard Dannatt said specific threats on the prince's life made his deployment an "unacceptable risk" to him and the men around him.

"Everybody feels sorry for him but it is the right decision," the source said. "People are missing the main point. It is not just the risk to Harry that is behind this decision. It is the risk that Harry's presence puts on the men with him."

Calling the prince "a good young officer," the senior military official said, "He just has to bite the bullet and resign himself to his new role."