Sacked MP is to return.
Patrick Mercer, a former officer with the Worcestershire and Sherwood Foresters, said that a serviceman being called a "black b*****d" was just part and parcel of army life.
Tory leader David Cameron sacked Mercer after he made the comments last month.
But yesterday he said the MP for Newark, Nottingham, could play a part in the next Conservative government.
"Patrick is a very talented MP," Mr Cameron said. "I'm sure there is room for him."