Housing Minister Phil Heatley was told only this morning that he will be replaced.
Nick Smith is being welcomed back into the fold to take over the housing portfolio from the Whangarei MP.
Smith resigned in the aftermath of the ACC furore.
Heatley said he was disappointed with Prime Minister John Key’s move but accepted it.
He planned to focus on his electorate.
Commentators said he had failed to shine in the portfolio.