Corporal Tomos Stringer, 23, of Pentrefelin, Criccieth in North Wales, was forced to sleep in his car after the Metro Hotel in Woking, Surrey turned him away when he showed his military identification.

Cpl Stringer, of the 13th Air Assault Support Regiment of the Royal Logistics Corps, had been flown back from Afghanistan for hospital treatment after he broke his wrist when he fell from a truck during a firefight.

He had travelled to Woking to help arrange the funeral of a friend who had been killed in action. Cpl Stringer is now back fighting in Afghanistan.

Defence minister Derek Twigg has called the case "shocking and deplorable".

When organisers of Scar-borough's Heroes Welcome scheme heard of the incident they immediately arranged a deal for him in Scarborough.

The Scarborough Hospitality Association has offered him two free nights' accommodation at a top hotel in the town.

John Senior, co-ordinator of Heroes Welcome, has also offered a complimentary meal for two including wine at Tricolos Italian Restaurant and a lobster meal at the Golden Grid Fish Restaurant.

Mr Senior said: "We would welcome Cpl Stringer in Scarborough with open arms. He needs to be made to feel wanted. What's happened to him is disgusting and I feel desperately sorry for him and his family."

Hundreds of businesses across the town have offered discounts to Army, Royal Navy, RAF personnel and veterans as part of the initiative, launched by the South Bay Traders' Association with support from the Evening News.

A spokesman for the Metro Hotel said: "We sincerely apologise for any upset. The management has always had an open door policy to all its visitors including members of the military. On this occasion there was a mistake by a duty receptionist."