A 99 Tracker - that should be similar to the 99 Vitara, which has a pneumatic freewheel system built into the front differential housing.
The flashing light is an indication that the pneumatic system is leaking somewhere, there is a pump module located behind the front bumper that turns on & off as necessary to keep the system pressurized when in 4WD and when the pump runs the light goes out - the occasional flash is nothing to worry about, but the more frequently it blinks out, the bigger the leak is.
Start by finding the pump - it's inline with the right of the radiator - it has two rubber hoses, one goes up the side of the radiator, and the other goes back down the frame rail and then along the crossmember to the differential. Disconnect the hose going to the differential and plug the pump outlet and see if the 4WD light continues to flash - if it does, the leak is in the pump module, if the flashing stops, the leak is either in the tubing or the diff.
Pump modules should be available at the dealer, and if you're handy with tools, might even be repairable - the most common leak in the pump is caused by rust - I did a pictorial "teardown" that might help if you need to open up your pump.