Transfer Clutch: Removal

Remove the transmission assembly from the vehicle. See REMOVAL , Automatic Transmission Assembly.
Remove the rear vehicle speed sensor.

Fig 1: Removing Rear Vehicle Speed Sensor
Courtesy of SUBARU OF AMERICA, INC.
Separate transmission case and extension case sections.

Fig 2: Separating Transmission Case & Extension Case Section
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Take out the transfer clutch by lightly tapping the end of the rear drive shaft.

Fig 3: Removing Transfer Clutch By Lightly Tapping End Of Rear Drive Shaft
Courtesy of SUBARU OF AMERICA, INC.