Ex-paratrooper Jan Hamilton, who was fired after refusing to wear a male uniform for a medical check-up, says she was "extremely upset" by reports in several national newspapers she has been awarded the substantial sum in an out-of-court settlement.

The 43-year-old, from Lytham – who was once known as Ian – took action to sue the Army for unfair dismissal and sexual discrimination, but she says discussions are still going on and she has not "received a single penny".

She said: "I was really disgusted to read these stories which are absolutely not true and what's worse is nobody bothered to contact me about them.

"There is no £250,000 agreement, I have never sought £250,000 and neither would I accept it.

"I have been trying to negotiate my resignation with the Army so I can just get on with my life.

"I thought I was making some progress and was feeling positive about the talks.

"Now I feel crushed by this. Someone came up to me in the street yesterday and called me a money grabber, which is just not fair."

She was particularly upset at reports comparing the payout to sums received by soldiers seriously injured in Iraq and Afghanistan.

She added: "It is totally false and what has really got to me was the way some national newspapers have brought the families of those soldiers into it, those heroes who have suffered horrific injuries in the line of duty – at a time when these people should be left alone.

"I really feel for those families and think it's despicable they have been asked about this. Especially as it's not true."

The former Iraq and Afghanistan veteran, who underwent gruelling surgery to transform from 16-stone paratrooper to a Size 10 woman earlier this year, also dismissed suggestions she was to take part in this summer's series of the Channel 4 reality TV show Big Brother.

She said: "I do have some television work lined-up, but it will be serious documentaries, looking at the issue of transgender."