The Bulgarian cabinet has put forward the discharge of Air Force Commander Maj Gen Rumen Radev.
"[The decision] has passed already. It should now go to the President. This should happen as quickly as possible," Focus News Agency quotes Bulgarian Prime Minister Boyko Borisov as saying.
Bulgaria's government subsequently has confirmed it has formally tabled the discharge of Radev to the President.
Radev came under the spotlight as a possible presidential nominee of the Bulgarian Socialist Party (BSP).
Last week, he filed a request to leave the Bulgarian Armed Forces, fuelling speculation whether he would seek to run. An acting military officer cannot be part of elections under Bulgarian law.
The decision to approve his request lies with the President.
Bulgaria's government was subject to criticism from the opposition, which alleged it was postponing on purpose the move to propose his discharge.
Radev has repeatedly said he is ready to comment on the ongoing developments once he is freed of his military duties.
Presidential elections in Bulgaria are due on November 06.