Major General ATM Amin, former director general of Bangladesh Ansar and Village Defence Party (VDP), was sent into retirement Sunday, said sources.
The report however could not be confirmed as there is no word yet from the defence ministry.
Amin was attached to the foreign ministry from Ansar and VDP a couple of months back and awaiting appointment as ambassador.
He came to public attention after he was appointed director (counter-terrorism) of the Directorate General of Forces Intelligence (DGFI) during the caretaker government's tenure.
Later, he was promoted to the rank of major general and made DG of Ansar and VDP.
Meanwhile, another much talked-about former DGFI director, Brig Gen Fazlul Bari, who was given the job of defence attaché to Bangladesh embassy in Washington DC at the end of the caretaker government rule, has been called back to Dhaka.
As he did not respond to the orders immediately, the government has lately specified a time frame for him to return, said foreign ministry sources.
Before being transferred to the military intelligence agency, Bari was additional DG of the Rapid Action Battalion during the BNP-led four-party alliance rule.