Fiona Hyslop has been axed from her post as Education Secretary, in the most high profile demotion of a minister since the SNP took power.
The beleaguered politician is to be replaced in her post, less than a week after it emerged that teacher numbers in Scotland had dropped dramatically.
The Scottish Government said she would swap roles with Michael Russell, who launched the Government's constitutional White paper on Monday.
He will take on responsibility for Education and Lifelong Learning, while Ms Hyslop will become Secretary for Culture and External Affairs.
Speaking for the first time to STV News about her new role Ms Hyslop said: "I am very pleased to be taking on the role of minister for culture and external affairs and culture.
"We are a minority government and we have to regroup, we have to move on.
"I think it is the right thing that a new minister takes on the challenges that we found ourselves in with local government failing to deliver national policy on education.
"That is why on Friday my colleagues supported my call that we should review and refresh a new approach for tackling that, and I think that Mike Russell is the right person to take that forward."
However, in a further snub to the troubled SNP MSP, responsibility for the constitution will not be transferred as part of the post.
Instead, responsibility for Scotland's future will be taken on by the First Minister himself.
Alex Salmond will take charge of the Referendum Bill to be introduced early in the New Year - previously one of the most high profile responsibilities held by Mr Russell.
The First Minister said: "Schools policy has reached a difficult period with our disagreement with many local authorities about their failure to reduce class sizes by sustaining teacher numbers, while we have achieved a new record low in primary school class sizes.
"It is appropriate that a fresh look is taken at this and other schooling issues to break the impasse for the benefit of parents, teachers and children. I believe that Michael Russell can bring new thinking to this tough task.
"Fiona Hyslop will do an excellent job as Minister for Culture and External Affairs, and will take responsibility for the Joint Ministerial Committees and for liaison with the Westminster Government and with Europe. There are key issues arising regarding changes in the terms of the JMC arrangements, and Fiona Hyslop will seek to secure a better deal for Scotland."
The decision follows a bitter political row over new figures released last week, which revealed teacher numbers in Scotland dropped by more than 1,300 in the past year.
Statistics published on Friday also confirmed that pupil-teacher ratios had increased since 2008, while there was no improvement in the proportion of children in primary one to primary three in class sizes of 18 or fewer.
The Government was quick to react, blaming Scottish councils for "deliberately refusing" to meet their pledges on class sizes and Ms Hyslop hinted that the Government would take back control over school funding if councils did not cooperate.
However, opposition politicians insisted the figures represented was one mistake too many and called for the Education Secretary Fiona Hyslop to be sacked.
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