Guo Boxiong, who was also the Politburo member of the ruling Communist Party of China (CPC), was expelled for taking bribes, official media reported.
The CPC Politburo meeting also decided to transfer his case regarding "suspected serious crime of taking bribes" and relevant clues to military prosecutors for handling in accordance with the law.
Guo, 73, formerly served as the vice chairman of the Central Military Commission (CMC) under former president Hu Jintao.
Earlier Gen Xu Caihou, who was the also the former Vice Chairman of CMC, was stripped of all ranks and faced trial. But he died of cancer recently.
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In all about 25 top Generals currently faced anti- corruption probes in the unprecedented anti-graft campaign launched by President Xi.
The decision to prosecute General Guo was made after today's meeting of the party which reviewed and approved a report by the CMC disciplinary inspection authority on Guo's investigation.
Investigations found that Guo took the advantage of his post to seek promotion and other benefits for others, and accepted bribe personally or through his family, said the statement issued after the meeting.
The statement said the CPC Central Committee on April 9 decided to put Guo under investigation according to the Party's disciplinary rules.