There are speculations that Australian Prime Minister Julia Gillard, who just got a fresh mandate from her party mates in the Monday Australian Labor Party leadership ballot, will initiate a cabinet reshuffle. The revamp reportedly would take into account the stand taken by Labor MPs with cabinet positions in the lopsided poll.

In danger of losing their portfolio are some of the 31 who voted in favour of resigned Foreign Minister Kevin Rudd. Besides rewarding those who supported Ms Gillard and punishing those who backed Mr Rudd, the reshuffle is also seen as attempts to strengthen the ALP against Opposition Leader Tony Abbott in the next national election.

The names of Stephen Smith or Simon Crean are being floated as replacements for Mr Rudd in the Foreign Affairs Ministry. Pending the final selection, Trade Minister Craig Emerson will simultaneously perform Mr Rudd's functions. Housing Minister Robert McClelland is expected to lose his post. However, Immigration Minister Chris Bowen would likely keep his job as a gesture of unity.

Ms Gillard also needs to look for a replacement for Assistant Treasurer and Sports Minister Mark Arbib, who unexpectedly resigned from the Senate. Mr Arbib said his decision was not linked with the result of the ALP leader's ballot but due to his desire to spend more time with his family.

Mr Rudd has appealed to the prime minister for no retribution against his supporters, whom he described as good Labor people. Ms Gillard has refused to accept the resignation of Infrastructure Anthony Albanese, a Rudd supporter.

Ms Gillard's ballot victory with a majority vote of 71 prevented an exodus of ministers since Attorney General Nicola Roxon and School Education Minister Peter Garrett have vowed not to serve as ministers under a Rudd cabinet. The same stand would likely be taken by Treasurer and Deputy Prime Minister Wayne Swan.

Mr Rudd has pledged his support for Ms Gillard despite the bitter leadership battle between the two Labor stalwarts. New South Wales Senator Doug Cameron, who supported Mr Rudd, urged the prime minister to return the former Foreign Affairs Minister to the frontbench because of the great contributions he could still make to Australia.

Ms Gillard, who is attending on Tuesday a caucus meeting, said that ALP would build a new platform for the future to provide Australian voters a clear choice in the 2013 elections.

However, Mr Cameron opined that if the prime minister would fail to improve Labor's chance of beating Mr Abbott in the next few months, he hinted that the party may seek another leader, who he hinted could still be Mr Rudd.

"My view is the same people who installed Julia Gillard will be looking for a candidate to replace Julia Gillard," the Herald Sun quoted Mr Cameron.

However, Mr Bowen has a different outlook. "We'll be working, all of us, with all our might to ensure (Ms Gillard) stays Prime Minister after the next election," he said.

Federal Chamber of Automotive Industries Chief Executive Ian Chalmers warned Ms Gillard of the danger of a major cabinet reshuffle to the Australian economy. He particularly batted for the retention of Manufacturing Minister Kim Carr, who has previously been demoted. In backing Mr Carr, Mr Chalmers cited the minister's active advocacy of the importance of maintaining a sophisticated automotive manufacturing capability in Australia.

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