The 29-year-old second-in-line to the British throne now has to decide whether he wants to continue his flying career, get a transfer to another branch of the military, or quit the forces and take on Royal duties, the 'Daily Mail' reported.
An aide to Prince William has confirmed he has until the end of 2012 to make the decision.
"The Duke has to make a decision during this year (by the end of 2012) and he has not yet made a decision. Whatever decision he takes, he will take jointly with his wife as you would expect," the aide was quoted as saying.
The Duke of Cambridge, who has said that he "absolutely loves flying", is currently stationed at the Royal Air Force Valley in Anglesey, in Wales, where he has been flying since January 2010.
William qualified as a co-pilot in a Sea King MK3 helicopter in September 2010 and said he would serve with the RAF for between 30 and 36 months. That means the earliest he could leave the service is next spring, the newspaper said.
However, aides insist that the Prince has not yet made his decision.
One source said: "Search and rescue has given the Prince an exciting job without putting him on the front line -- but he is bound to a shift timetable. There are advantages of him transferring to the army -- one being that he would likely be able to take on more official duties."
