Jeremy Hunt has taken over from Andrew Lansley as health secretary, in a move which stunned Westminster insiders.
The beleaguered media secretary was expected to lose his job after he was found to have communicated closely with Rupert Murdoch's News Corp while making a quasi-judicial decision on the BSkyB takeover.
Instead he will take over the health brief from Lansley, who has been widely criticised for failing to explain his complicated NHS reforms.
Lansley will become leader of the House of Commons, a position previously occupied by Sir George Young.
The move raised questions about David Cameron's judgement. Hunt was not seen as someone who had performed particularly well, despite overseeing his department during the Olympics.
Many expected the Murdoch scandal to be the final nail in his coffin but he has emerged as the major winner of the reshuffle.