Labor minister Chris Evans will have the words tertiary education added to his portfolio title, after Ms Gillard heeded concerns from the universities sector.
The federal government has come under fire from education and student groups upset that responsibilities for the old, single education portfolio would be shared among three ministers.
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Representatives from the universities sector were especially concerned the portfolio didn't actually recognise Senator Evans' education role.
A spokesman for Ms Gillard on Monday said there would be no change to the portfolio name, but less than 24 hours later Senator Evans' was the new tertiary education, jobs, skills and workplace relations minister.
"As you know, there was some concern in the tertiary education sector," Senator Evans told ABC Radio on Tuesday.
"While I think it is more a question of what you do and what you deliver than what you are called, I thought it was reasonable to respond to that.
"I got to chat to the prime minister about it last night, she was of the view as well that if there was concern, better to respond to it and address those concerns, and we did."
Ms Gillard also backflipped on the reappointment of Warren Snowdon as Inidigenous Health Minister.
Indigenous groups, doctors and the opposition had questioned the PM's decision to do away with the portfolio.
Health Minister Nicola Roxon last night told ABC TV Ms Gillard made it clear she wanted a big focus on a range of key challenges, including health reform, jobs and productivity and a strong economic team.
She says they've now seen that indigenous health had been overlooked and made the change.
Meanwhile, the opposition has wasted no time in slamming Kevin Rudd's appointment as Foreign Minister, saying that his trip to the US proves he thinks he's Australia's 'prime minister in exile.'
Ms Gillard gave Mr Rudd the portfolio on Saturday, after deposing him from the top job in June.
The Queensland frontbencher and his Labor colleagues will be sworn in to their new roles in Canberra on Tuesday.
Then he'll head to the US later this week to meet senior officials in the Obama administration and attend the UN General Assembly.
Deputy Opposition leader Julie Bishop said Mr Rudd appeared to be picking up where he left off as prime minister.
"I understand that the UN requested world leaders to attend the General Assembly meeting," she told ABC radio.
"Mr Rudd clearly sees himself as Australia's prime minister in exile."
Opposition Leader Tony Abbott is expected to announce his frontbench later in the day or on Wednesday.
