NSW senator Arthur Sinodinos is a former cabinet secretary and former chief of staff to John Howard.Credit:Janie Barrett
Communications Minister Mitch Fifield,who was expected to be demoted from Mr Morrison's new-look cabinet on Sunday,will be appointed Australia's representative at the United Nations - a role typically occupied by career officials from the Department of Foreign Affairs and Trade.
An announcement will be made at Parliament House on Sunday afternoon.
Mr Hockey has served as Australia's representative in Washington since 2016 but will return to Sydney when his posting expires at the start of next year.
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The Prime Minister was expected to name a replacement later this year but the decision to send Senator Sinodinos will be made public when he unveils his revamped ministry on Sunday.
Mr Hockey has formed close relationships with senior Trump administration officials and has played golf with the president several times.
His successor will take up the posting at a highly volatile time,just as the Democratic presidential primaries are beginning and with President Donald Trump focussed on his re-election prospects.