Sounds like the pivot ball has worn through the fork. Both our 110 defenders at work did the same thing within 6 months of each other. (one 200tdi, one 300tdi, both r380 box)
If you take the slave cylinder off, the push rod that operates the fork should be sticking out of the hole. If it it's sort of flush with the hole, then the fork has gone.
Gearbox / Engine out. Excuse to fit a new clutch? I think our local clutch centre charged about £300 .