Residents at an estate in east London have received a leaflet saying soldiers could be placed there during the Games.
It says part of an air defence system might be based at a water tower on the estate, where 700 people live.
A spokesman said the MoD had not yet decided whether to deploy ground based air defence systems during the Games.
The leaflet states that members of the Armed Forces will be
at the location for a military exercise in early May for between five
and seven days, between 2 and 7 May.
It goes on to say that there will be a "major national
exercise" from 2 to 10 May to test the Armed Forces' capabilities to
help the police provide security during the Olympics.
Improve security
And if the government decides to use the missiles during the
Games, then the soldiers could be "operationally deployed for a period
of up to two months this summer".
The MoD also says in the leaflet
that the missiles will be manned by "fully trained, professional
soldiers", will not pose a hazard to residents and the missiles "will
only be authorised for active use following specific orders from the
highest levels of government in response to a confirmed and extreme
security threat".
The document also states that "having a 24/7 Armed Forces and
police presence will improve your local security and will not make you a
target for terrorists".
Journalist Brian Whelan, a resident at the flats, said: "They
are going to have a test run next week, putting high velocity missiles
on the roof just above our apartment and on the back of it they're
stationing police and military in the tower of the building for two
months.
"It's a private, gated community... We have an MoD leaflet saying the building is the only suitable place in the area.
"It says there will be 10 officers plus police present 24/7. I'm not sure if they are going to live in the building."
'Not normal'
Mr Whelan also said that the property management company which
runs the flats put up posters and gave out the leaflets on Saturday.
A
MoD spokesman said: "As announced before Christmas, ground based air
defence systems could be deployed as part of a multi-layered air securit
y plan for the Olympics, including fast jets and helicopters, which will protect the skies over London during the Games.
"Based on military advice we have identified a number of
sites and, alongside colleagues from the Metropolitan Police, are
talking to local authorities and relevant landowners to help minimise
the impact of any temporary deployments.
"As part of our ongoing planning, we can confirm site evaluations have taken place."
Source: BBC News