Alan Griffin told Ms Gillard on Tuesday evening he did not want to continue in the veterans' affairs portfolio.

The news broke yesterday amid lobbying by MPs for plum front-bench jobs on both sides of politics as they gather in Canberra today for their first party room meetings since the election.

Right faction Labor MPs who gathered for drinks in Canberra last night said they expected Ms Gillard to ''read the riot act'' to them today, stressing that the precarious nature of minority government meant they were one by-election away from defeat.

The departure of Mr Griffin, who was cleaning out his ministerial office last night, means Ms Gillard has to replace three ministers from the Left after the resignation of former defence minister, Senator John Faulkner, and the retirement of former finance minister Lindsay Tanner.

This could allow the promotion of Kate Lundy, the ACT's Labor senator who is from the left faction.

She is hopeful of gaining a position in the ministry, following her disappointment at being dumped from the front bench by Kevin Rudd after the 2007 election.

Her case is boosted by the loss of a minister from the Senate as well as the lack of ACT representation on the Labor front bench, following the retirement of Bob McMullan, who was a parliamentary secretary.

Ms Gillard is not expected to announce her new front-bench line-up until early next week.

Labor MPs said they would have to ''swallow their jealousy'' if Mr Oakeshott accepted the historic appointment of a cabinet post as reward for saving Labor from defeat.

Environment Minister Peter Garrett may be moved to an outer ministry after the political storm over the failed ceiling insulation scheme.

Opposition Leader Tony Abbott will receive a hero's welcome at the Coalition joint parties meeting today.

A senior member of his front bench said replacing Julie Bishop as Liberal Party deputy after the Coalition's ''near victory'' would ''send the wrong signal'' about the party's election strategy.

Ms Gillard was talking to senior ministers yesterday about the revamp of her front bench. She has promised that Mr Rudd would be in her new cabinet and has offered Mr Oakeshott a ministry, expected to be a regional affairs portfolio to reflect the Government's new-found focus.

For more on this story, including details of how Mr Oakeshott's position would work in practice if did accept Ms Gillard's offer of a ministry, see the print edition of today's Canberra Times.