Japanese Prime Minister Junichiro Koizumi on Monday reshuffled his cabinet for a third time, removing most of ministers while keeping the pivotal portfolios of economy, trade as well as finance unchanged in an apparent gesture to maintain a stable backup for his ambitious reforms.

Finance Minister Sadakazu Tanigaki and Minister of Economy, Trade and Industry Shoichi Nakagawa retained their posts.

Heizo Takenaka, a heavyweight figure in Koizumi's sweeping reforms, was named to serve as postal reform minister while keeping the office as economic and fiscal policy minister.

The premier had said he would not pick cabinet ministers based on party faction balance, but on whether they will support his reform policies centered on the privatization of Japan's postal services. The appointment of determined reformer Takenaka as postal reform minister demonstrated Koizumi's resolution to fulfill the task.

Japan's former cabinet adopted the privatization plan early this month despite oppositions from vested interest groups within the ruling Liberal Democratic Party (LDP).

The world-second largest economy is witnessing the most exuberant economic performance although there are concerns in a verity of aspects, such as the sluggish domestic demands. Apart from the privatization of postal services, the reform on pension system also met strong resistance.

As there will be no parliament or LDP leadership elections before the end of Koizumi's tenure in 2006, the premier is emboldened to implement his reforms.

In other notable positions, Koizumi put Nobutaka Machimura, a former education minister, as foreign minister, replacing Yoriko Kawaguchi, who has been facing opposition voices for not being a lawmaker.

Koizumi also named 68-year-old Yoshinori Ono to take over from Shigeru Ishiba, 47, as director general of the Defense Agency. Ono would be dealing with Japan's aspiration to expand the role of its Self-Defense Forces.

Other officials who retained their ministerial posts include Chief Cabinet Secretary Hiroyuki Hosoda, Minister for Public Management, Home Affairs, Posts and Telecommunications Taro Aso and Environment Minister Yoriko Koike.

Tatsuya Ito, 43, succeeded Takenaka as financial services minister.

Chieko Nono was named as justice minister, and Nariaki Nakayama, as minister of education, culture, sports, science and technology.

Minister of land, infrastructure and transport went to Kazuo Kitagawa, the policy chief of LDP's coalition partner, the New Komeito party.

One-time farm minister Yoshinobu Shimamura returned as farm minister once more, Hidehisa Otsuji, an LDP member from the House of Councilors, was named as health, labor and welfare minister and Yoshitaka Murata as chairman of the National Public Safety Commission.

Seiichiro Murakami was appointed as minister in charge of administrative reform, and Yasufumi Tanahashi, as information technology minister.

Koizumi also restructured the LDP leadership early the day, putting former farm minister Tsutomu Takebe as the key secretary general. Acting Secretary General Fumio Kyuma was named as chairman of the decision-making General Council, and former trade and industry minister Kaoru Yosano became chairman of the Policy Research Council.

The reshuffled cabinet is expected to be inaugurated around 6 p.m.(0900 GMT), with Emperor Akihito giving the new ministers their letters of appointment at the Imperial Palace.

List of Japan's new cabinet

Prime Minister: Junichiro Koizumi, 62, LDP

Internal Affairs and Communications Minister: Taro Aso, 64, LDP

Justice Minister, State minister in charge of juveniles, falling birthrate: Chieko Nono (F), 68, LDP

Foreign Minister: Nobutaka Machimura, 59, LDP

Finance Minister: Sadakazu Tanigaki, 59, LDP

Education, Culture, Sports, Science and Technology Minister: Nariaki Nakayama, 61, LDP

Health, Labor and Welfare Minister: Hidehisa Otsuji, 63, LDP

Agriculture, Forestry and Fisheries Minister: Yoshinobu Shimamura, 70, LDP

Economy, Trade and Industry Minister: Shoichi Nakagawa, 51, LDP

Land, Infrastructure and Transport Minister: Kazuo Kitagawa, 51, NK

Environment Minister, State minister in charge of Okinawa and Northern Territories: Yuriko Koike (F), 52, LDP

Chief Cabinet Secretary, State minister in charge of gender equality: Hiroyuki Hosoda, 60, LDP

Chairman, National Public Safety Commission, State minister in charge of disaster management: Yoshitaka Murata, 60, LDP

Director General, Defense Agency: Yoshinori Ono, 68, LDP

Financial Services Minister: Tatsuya Ito, 43, LDP

State minister in charge of economic and fiscal policy, Postal reform minister Heizo Takenaka, 53, LDP

State minister in charge of deregulation and Industrial Revitalization Corp. of Japan: Seiichiro Murakami, 52, LDP

State minister in charge of science and technology policy and food safety: Yasufumi Tanahashi, 41, LDP

(Note: LDP = Liberal Democratic Party, NK = New Komeito party, (F) = female)