Combat Stress, the charity for ex-forces personnel with mental health problems, is in talks with the Ministry of Defence after an independent review said it should receive statutory funding.
The charity, which provides the only service of its kind in the UK, admitted more than 3,000 clients to its three centres this year, and saw another 7,794 through home visits.
Those who qualify for war pensions get up to six weeks of treatment from Combat Stress each year, paid for by the MoD. But changes to the pension rules earlier this year mean that the number who qualify has since fallen significantly.
The knock-on effects on Combat Stress's funding prompted the charity to lobby the MoD, which in turn commissioned an independent review by the Health and Social Care Advisory Service, another mental health charity.
The Hascas review found that Combat Stress provides an essential service that should be at least partially funded by government.