Source: Warhammer Fantasy: 6th Edition

Moving Characters Within Engaged Units
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If a unit is engaged in combat and a character is positioned in the formation in such a way that he is unable to fight, perhaps because he is in the front rank and the formation has been charged in the rear, or because the enemy unit is smaller and the character is stranded beyond the fighting, then the player is allowed to move the character into a position where he can fight in his next Movement phase. Simply swap the character for an ordinary trooper model that is already fighting. This can mean that the character loses the chance to fight in the first turn of combat. Note that a character may not replace another character who is already engaged in close combat.

Although the above rule allows a character to move within a unit in order to fight an enemy, he cannot move once he is already fighting. For example, he cannot move from the front to the rear if he is already fighting to the front, he must stay where he is and fight the enemy he is touching. Nor can a character move into a non-fighting rank to avoid fighting unless he is deliberately refusing a challenge, as described later.

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