The Chief of the General Staff is examining the feasibility of a Sikh unit.
The head of the British Army, Mark Francois said the idea “may well have merit” as he told the Commons a reserve company is also under consideration.
Thousands of Sikhs from the Indian sub-continent fought and died for Britain during the World war I.
The move comes eight years after a similar initiative was ditched amid fears that such a bespoke unit would be deemed racist. Mark Francois, the armed forces minister, however, said the idea “may well have merit”.
A reserve company of Sikhs was also under consideration, he added. Such a company would inherit many of the “proud traditions of Sikh regiments” from the army’s past, the minister said, during Commons defence questions.
The Mid Sussex MP told Mr Francois: “You will be aware of the extraordinary gallant and distinguished service by Sikhs to this country down the generations.
“Would you not agree with me that it’s high time to do away with the political correctness which infects some of this thinking and actually raise a Sikh regiment to serve in the country and make up a very serious gap in our Armed Forces?”
Mr Francois replied: “With regard to your specific suggestion, can I say that you are one of a number of Members of Parliament who have raised this suggestion with me recently.
Conservative Rory Stewart, chairman of the Defence Select Committee, also asked Mr Francois to look at a Sikh company within the reserves “as a starting point”.
He added: “There seems to be much more possibility within the reserves to begin what seems like an excellent idea.”
Mr Francois replied: “I said earlier the idea may have merit but we’ve looked at one specific option, or are looking, at the possibility of a reserve company – not least one which would inherit many of the proud traditions of Sikh regiments going back through many years in the British Army.