Prime Minister Scott Morrison announced the new line-up on Thursday alongside Deputy Prime Minister Michael McCormack, who survived Barnaby Joyce's leadership challenge on Tuesday.

Mr Chester has returned to cabinet, with the Victorian's portfolios of veterans' affairs and defence personnel given higher status.

Queensland MP Mr Pitt has jumped from the back bench to cabinet as the new resources, water and northern Australia minister.

He takes resources and northern Australia from Matt Canavan, who quit to support Mr Joyce's failed attempt at toppling Mr McCormack.

New deputy Nationals leader David Littleproud has regained the agriculture portfolio, replacing Bridget McKenzie who quit over the sports rorts scandal.

Mr Littleproud, who remains drought and emergency management minister, has relinquished responsibilities for water.

Mr Pitt has been a staunch supporter of Australia considering nuclear energy.

But Mr Morrison doused suggestions the new resources minister could change the government's mind on the banned energy source.

"Into the future we're going to have to be looking at all opportunities to ensure our energy future, but the policy on nuclear is very clearly set," the prime minister told reporters.

He also denied there was a high chance Mr Pitt would have conflicting responsibilities being in charge of water and mining.

"The authorities the minister has when it comes to water resources will be advised by a separate department," Mr Morrison said.

"That remains where it sits. That will continue. The minister will acquit himself across those responsibilities."

Minerals Council chief executive Tania Constable said Mr Pitt had been a strong advocate for the resources industry.

"Representing regional Queensland as the Member for Hinkler, he's lived and breathed our industry and is proud of it," she said.

"He will bring passion and experience to this role."

Mr Chester stays in charge of veterans' affairs after the government announced an investigation into the suicide of more than 400 defence personnel since 2001.

NSW MP Mark Coulton - a key ally of Mr McCormack - will be minister for regional health, regional communications and local government.

Andrew Gee, also a McCormack backer, has been promoted to the outer ministry with responsibilities for regional education and decentralisation.

He also takes over as assistant trade minister.

Another McCormack ally, Queensland MP Michelle Landry will continue as assistant minister for children and family services, while also assisting Mr Pitt as minister for northern Australia.

NSW MP Kevin Hogan has been promoted from the backbench to be Mr McCormack's assistant minister.

Australian Associated Press