PlayBringing Peter Mandelson back into the Cabinet is "a risk" for Gordon Brown, the Prime Minister's closest political ally has admitted.
But Schools Secretary Ed Balls said that he backed the decision, which he said also represented "a great opportunity for our country and our Government".
Mr Brown himself said that the reshuffle brought together the expertise from business and politics needed to get Britain through difficult economic times.
Following Friday's shock Cabinet reshuffle, which saw Mr Mandelson appointed Business Secretary, Margaret Beckett brought back as housing minister and John Hutton moved to defence, details of further changes in junior Government positions trickled out on Saturday.
Britain's first Muslim minister Shahid Malik revealed that he had been promoted to a post in the Ministry of Justice, while Glasgow South MP Tom Harris confirmed he had been sacked as transport minister.
Downing Street declined to confirm any further details of the reshuffle, which are expected to be formally announced soon.
Mr Mandelson's return to a Government he was twice forced to quit won a mixed reaction, with business leaders welcoming his appointment, while some Labour MPs warned he would be a disruptive and divisive influence.
Mr Balls dismissed reports that he opposed the appointment, saying: "Of course it's a risk, but at the same time, it's also a great opportunity for our country and our Government. Gordon Brown looked at this carefully and he decided it was worth that risk and I think that was the right thing to do.
"Peter has got great experience, and great international experience... I spoke to him this morning and I know that he is determined to come back and work with us all together to do the best for Britain."
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