The prince, 28, – who qualified as a Royal Air Force (RAF) pilot earlier this year flying helicopters which are involved in life-saving missions – was expected to remain in his current role until 2013.
However under new proposals by the Prime Minister, RAF and Royal Navy search and rescue helicopters will be replaced by civilian pilots working for private firms.
Along with William, 17,000 servicemen and women face unemployment following the £7 billion sell-off.
Following October’s defense review, it has been decided that instead of RAF helicopters, 24 American Sikorsky S-92 choppers – operated by French defense company Thales and helicopter firm CHC - will be stationed along Britain’s coastline from 2012.
The plan could put Prince William out of work. At present, he is based at RAF Angleseyin Wales, where he and fiance Kate Middleton share a cottage.
However, other sources claim the plan won’t come in until late 2013 – meaning William will keep his job.
Shadow Defence Minister Michael Dugher has slammed the proposal, telling Britain’s Sunday Mirror: "At a time when we are making thousands of our armed forces redundant, it is ludicrous to waste billions of pounds of taxpayers' money in this way. The MoD has completely lost the plot."
William saved a hill walker who had collapsed after a heart attack just 48 hours after announcing his engagement to Kate Middleton earlier this year.
The second in line to the throne helped fly the helicopter which transported the man to hospital after he fell ill while climbing Mount Snowdon in North Wales.
