The move will see the covenant formally extended to all members of the armed forces The government is to enshrine in law the military covenant, the duty of care promised to armed forces members and their families, the BBC understands.
The move comes after pressure from some backbenchers, opposition MPs and the Royal British Legion. There have been concerns over the treatment of personnel when they retire or return from active service overseas.
The Armed Forces Bill had only proposed introducing an annual report on how the covenant was being honoured.
The covenant itself is not currently legally binding.
It only officially applies to the Army, but its core principles are taken to extend to the air force and navy.
It states soldiers will be called upon to make personal sacrifices - including the ultimate sacrifice - and that they and their families should expect fair treatment and to be valued, respected and properly rewarded.
In practical terms, it means they should be able to be entitled to adequate housing and health care.
In opposition, Prime Minister David Cameron set up a review and expressed a wish to set out commitments on matters including compensation, education for military children and care for troops injured on the battlefield.
But when the government published the Armed Forces Bill, which is now going through Parliament, it just required the defence secretary to issue a report on the state of the covenant.
In response, the Royal British Legion, which had been campaigning for several years for the covenant to become law, said it was "pretty depressing" and MPs calling for changes expressed disappointment.
'Broad principles'
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What is the military covenant?
- Britain's duty of care to its armed forces began as an unspoken pact between society and the military, possibly as far back as Henry VIII's reign
- The pact, reinforced by custom and convention, was formally codified as a "covenant" in 2000 but not made law
- It states soldiers will be called upon to make sacrifices - including the ultimate sacrifice. In return, they and their families can expect fair treatment and to be sustained and rewarded
- The covenant only officially applies to the army, but its core principles are taken to extend to the air force and navy
The passage of the bill had been delayed, with Tory backbench MP Philip Hollobone tabling an amendment for formal recognition of the covenant.
On Monday, the prime minister is expected to announce the covenant is to be put on a statutory basis for the first time and he will formally extend it to include all members of the armed forces. It is thought the legislation will set out some broad principles rather than pledges on specific entitlements.
It is expected to say that no member of the armed forces should be disadvantaged because of their service and that in some cases, service personnel should be given special treatment.
BBC political correspondent Ben Geoghagen said it was not known whether the legislation would enable members of the armed forces to challenge the government in the courts if they felt the covenant was not being upheld.
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