Wigan MP Lisa Nandy, who previously held that position, has been demoted to minister for international development.

Although she will still attend cabinet, Sky News deputy political editor Sam Coates said she is "having her wings clipped" with less responsibility involved in her new role.

He said: "There is not a cabinet post anymore for international development, Boris Johnson scrapped the department for international development so in affect she will be probably a minister - shadowing the minister of state level.

"She will be sort of a shadow number two in the foreign office. This is unambiguously a demotion."

A source close to Lisa Nandy said she is "proud of the work" she has done in levelling up, which covers housing and devolution.

"Lisa is a team player and looks forward to getting stuck into the new role," they said.

A Labour source said: "Keir is delighted that Angela has accepted this important role, in addition she will continue to be the strategic lead on Labour's new deal for working people."

Politics Live: Labour reshuffle under way

Ms Rayner was elected deputy leader by party members in 2020, meaning she will keep that position no matter what.

She was previously shadowing the Cabinet Office, a relatively low-profile brief which focuses on government procedure.

The change of the party's top team coincides with the return of parliament after the summer recess.

It kicked off with the resignation of environment minister Jim McMahon, who said he was stepping down after facing "a number of personal challenges in the last year coming back from a serious illness".

It is not expected Sir Keir will replace his most senior colleagues, including shadow chancellor Rachel Reeves and shadow home secretary Yvette Cooper.

Among the names of those who have been tipped for a possible promotion include Darren Jones, who currently chairs parliament's business and trade committee, and shadow policing minister Sarah Jones.

It follows Rishi Sunak's mini Cabinet re-shuffle, in which he avoided major changes but gave new appointments to close allies Grant Shapps and Claire Coutinho.

It comes as both leaders gear up for annual party conference season in October and look to getting their top teams in shape for the next general election.