UPDATE: FORMER Prime Minister Kevin Rudd has missed out in Julia Gillard's minor cabinet reshuffle.

But the new prime minister says she'd be delighted to include her former boss if Labor's re-elected.

Simon Crean will take over Ms Gillard's portfolios of education, employment and workplace relations.

Foreign Minister Stephen Smith will add trade to his portfolio. Mr Crean was formerly the minister for trade.

Ms Gillard said Mr Smith had been doing a "great job" as foreign minister.

Mr Rudd will not be part of the team.

Ms Gillard said she had spoken to Mr Rudd about his future and he had confirmed he would run for his seat at the next election.

"Consequently what I have said to Kevin Rudd is I would be absolutely delighted to see him serve as a senior cabinet minister in the team if the government is re-elected," she said.

Ms Gillard said she completely understood Mr Rudd's immediate desire to spend time with family after he was dumped last week.

"What I've said to Kevin is, that I think that this is the best course and it would enable him, if he chose to do so at this time, to spend more time with his family which I know is one of his key priorities in life."