Chiou I-jen, chief of staff of President Chen Shui-bian, was named vice premier, the Government Information Office said in a statement.

Economics Minister Steve Chen, Finance Minister Ho Chih-chin and Transport Minister Tsai Tuei retained their positions in the reshuffle by Premier Chang Chun-hsiung, it said. Local media reported Foreign Minister James Huang and Defense Minister Lee Jye were also expected to retain their jobs.

The Cabinet ministers will serve until May 2008 when Chen Shui-bian steps down and the newly elected president takes office.

Chang was named premier on Monday to help the ruling Democratic Progressive Party gear up for the 2008 presidential election. The race will pit the DPP's Frank Hsieh against the main opposition Nationalist Party's Ma Ying-jeou.

Chiou replaces Tsai Ing-wen, a well-respected technocrat with expertise in business and international trade.

Chiou is a skillful strategist who has previously managed Chen's election campaigns, and is credited with using brilliant tactics to win a number of races.

Opposition lawmakers see Chiou as a notorious campaign manager who used "cutthroat" strategies against opponents.

During the 2004 presidential race, Chiou was accused of trying to implement an islandwide referendum _ to coincide with the vote _ on whether Taiwanese support a missile buildup against rival China.

The referendum was allegedly designed to attract more Chen supporters at the polls, but the move failed to come to fruition after an opposition campaign to boycott it.

Taiwan and China split amid civil war in 1949. Beijing claims self-ruled Taiwan as part of its own territory to be unified with the mainland, by force if necessary.