"I look forward to him returning to his Ministerial role when he is in a position to do so," Prime Minister Scott Morrison said.
Australia's immigration minister has taken indefinite leave for personal reasons.
Despite standing aside from his cabinet role, David Coleman will continue to serve as the member for Banks in south-west Sydney.
The Minister for Population, Cities and Urban Infrastructure, Alan Tudge, will take on the additional ministerial duties in an acting capacity until his colleague is ready to return to the position.
Prime Minister Scott Morrison confirmed the reshuffle in a statement, adding that there would also be additional duties for the Member for Fairfax.
"To assist Minister Tudge I have tasked...Ted O’Brien to lead the Government’s negotiations in relation to the South East Queensland City Deal," the prime minister said.
"This new responsibility will complement his existing role representing the Australian Government in relation to the 2032 South East Queensland Olympics and Paralympics."
The prime minister reaffirmed his support for Mr Coleman, maintaining his ministerial duties will be waiting upon his return.
"I look forward to him returning to his ministerial role when he is in a position to do so," he said.