Baroness Warsi has lost her job as the Conservative Party Co-Chair but will still attend Cabinet after being handed other roles.
The Dewsbury-born peer was widely tipped to be moved in the Prime Minister's first major reshuffle of the coalition Government.
David Cameron has appointed her as Senior Minister of State at the Foreign Office alongside, a role as Minister for Faith and Communities.
Downing Street has confirmed she will attend Cabinet.
Baroness Warsi seemed to confirm the speculation over her future by sending a tweet in the early hours of this morning:
Elsewhere, Derbyshire Dales MP Patrick McLoughlin has been handed the role of Transport Secretary.
William Hague, the MP for Richmond, keeps his job as Foreign Secretary.