Education Secretary Michael Gove is to become the new chief whip in the most wide-ranging cabinet reshuffle of David Cameron's premiership.
He has been replaced by Treasury minister Nicky Morgan, as Mr Cameron promotes more women into top jobs.
Ken Clarke is among the old guard to have stood down and Foreign Secretary William Hague has moved to a lower profile role as Commons leader.
Defence Secretary Philip Hammond has taken over at the foreign office.
Among the other changes announced so far:
- Lord Hill, Leader of the House of Lords, has been nominated as the UK's next European Commissioner
- Liz Truss, a 38-year-old education minister, who entered the Commons in 2010, has been drafted into the cabinet as environment secretary
- Business minister Michael Fallon - a veteran frontbencher - is named as the new defence secretary
- Esther McVey - who was tipped for promotion - will remain as employment minister but with the added status of attending cabinet meetings
- David Jones is sacked as Welsh secretary to be replaced by his deputy Stephen Crabb
- David Willetts replaced as universities minister by Greg Clark, who will attend cabinet
- A cull of long-serving ministers includes chief whip Sir George Young, minister for civil society Nick Hurd, Foreign Office minister Hugh Robertson, energy minister Greg Barker, international development minister Alan Duncan, Northern Ireland minister and policing minister Damian Green
Announcing Michael Gove's surprise move to Chief Whip, a behind-the-scenes role in charge of party discipline, Mr Cameron said on his Twitter feed that the former education secretary would also have "an enhanced role in campaigning and doing broadcast media interviews".
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MP Ken Clarke tells the BBC why he thinks all-women shortlists are a good thing
Mr Gove has been one of the most radical and at times controversial figures in David Cameron's government, driving through far reaching changes to the education system such as free schools and the extension of the academy programme.
His calls for a return to more traditional teaching methods and war on the educational establishment have brought him into conflict with the unions and his replacement by the relatively unknown Nicky Morgan could be seen as an attempt to calm things down, said the BBC's Norman Smith.
'Male, pale and stale'The BBC News channel's chief political correspondent said Mr Gove was a very close ally of Mr Cameron and would play a key role in holding the Conservative Party together in the run up to May's general election.
He said the aim of the reshuffle was to bring in fresh faces and make voters think again about the Conservatives' "male, pale and stale" image.
A string of retirements were announced overnight, with their replacements being unveiled during the course of the morning.
Analysis
By BBC Political Correspondent Robin Brant
Three things to take from this reshuffle:
1. This is about presentation. Unashamedly the prime minister is changing what his government looks and sounds like to voters. It looks like he's doubling the number of women cabinet ministers, albeit from a low starting point of just three. The new education secretary, Nicky Morgan, is a marathon-running working mum. The new environment secretary, Liz Truss, is still in her thirties. But the risk is that some, both inside and outside politics, will see it as just that; presentation, and nothing more.
2. The Tory take on Europe is a key theme to the reshuffle. Arch-Eurosceptic Owen Patterson is out, as are the more Europhile Ken Clarke and the now ex-Attorney General Dominic Grieve. Some in the Conservative Party believe Mr Hague went "native" in his time at the Foreign Office and his anti-Brussels sentiment waned. We still don't know if Liam Fox is returning to the government, but much is pinned on the ascension of Phillip Hammond to foreign secretary - he has said the UK should leave the EU if it doesn't get the reforms it wants.
3. The prime minister has gone on to full election fighting mode. Michael Gove and Mr Hague both have less significant jobs but Downing Street is making it clear both will have big campaigning roles. The respected statesman from the north and the uber-polite, articulate - although his toxicity became too much at education - son of adopted parents will be prominent media performers between now and May 2015.
Others still waiting to hear their fate include whips Claire Perry and Amber Rudd and Priti Patel.
Among other changes, it has been reported that former defence secretary Liam Fox could return to the government although this has yet to be confirmed.
BBC political editor Nick Robinson said Environment Secretary Owen Paterson has effectively being fired while former Commons leader Andrew Lansley has also left the government.
But the biggest name in the changes has been Mr Hague, who announced late on Monday that he had decided to step down as an MP at next year's general election after 26 years - including four turbulent years as Tory leader.
Until then he will be, as Mr Cameron put it, his "de facto political deputy" and leader of the House of Commons.
'Massacre of moderates'Some see the appointment of Mr Hammond - who has said he could vote to leave the EU if the UK did not get the changes it wanted in a future re-negotiation - and the departure of Dominic Grieve as Attorney General as a shift towards a more Eurosceptic stance.
But Ken Clarke - the cabinet's most prominent Europhile - heading for ministerial retirement after a career in frontline politics that stretches back to the early 1970s dismissed such claims, telling BBC Radio 4's Today programme: "If the whole thing is all about Europe then we really have gone mad."
He also praised Mr Cameron's decision to promote more women into frontline roles, saying it was long overdue.
Labour has described the reshuffle as the "massacre of the moderates", claiming it marks a lurch to the right on Europe and a range of other issues.
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